Digital Nomad
How the Energy + Vehicles Bill Affects Travel, Mileage and Remote Work Tax in the UK
The Taxation (Energy and Vehicles) Bill 2026–27 brings changes—approved in July—for mileage and energy levies that will have knock-on effects for nomads, remote employees, and businesses with vehicle-linked costs.
By NomadicTax Research Team • 5-8 min read • July 19, 2026
## Overview of the Taxation (Energy and Vehicles) Bill 2026–27
Introduced on **24 June 2026**, this Bill includes a number of measures that came into spotlight in early July. One key provision: an **increase in the Electricity Generator Levy (EGL)** from **45% to 55%**, effective **1 July 2026**. ([commonslibrary.parliament.uk](https://commonslibrary.parliament.uk/research-briefings/cbp-10913/?utm_source=openai))
Other measures in the Bill touch on vehicle taxation, mileage allowances, and environmental levies—all with relevance for those working remotely, travelling for business, or using vehicles as part of their income structure. ([commonslibrary.parliament.uk](https://commonslibrary.parliament.uk/research-briefings/cbp-10913/?utm_source=openai))
## What this means for Digital Nomads & Remote Workers
### Mileage costs and allowances
- The **Approved Mileage Allowance Payments (AMAPs)** are being increased for the 2026/27 tax year. For digital nomads or remote consultants who travel for client work, being aware of updated rates is essential. ([commonslibrary.parliament.uk](https://commonslibrary.parliament.uk/research-briefings/cbp-10913/?utm_source=openai))
- When using personal vehicles for business or client visits, ensure you're firmly documenting travel—dates, distance, purpose—to claim the new allowances accurately.
### Remote work and energy costs
- The raised Electric Generator Levy may indirectly affect energy-intensive operations, especially for co-working spaces, off-grid accommodation, or workplaces with high power usage. Digital nomads in such settings may see increased costs for electricity or power generation.
- Some clients or businesses may pass through these costs, or incorporate them into rates—so awareness and negotiation are key.
## Examples
- A remote consultant travelling 12,000 business miles in 2026-27 using their car may receive a higher mileage allowance for each mile. Confirm the AMAP rate for each mile over 10,000 or under, whichever applies.
- A digital nomad living part-time in a rural area relying on backup generators or solar may face higher effective costs for excess electricity usage due to raised EGL rates.
## What to do now
1. **Check mileage logs and update contracts** if any work or client agreements assume older AMAP rates. Request compensation reflecting the new rates if mileage-intensive.
2. **Audit energy suppliers or landlords** for any increase due to EGL, especially if lease/rental costs include utilities passed through.
3. **Budget for increased levies**, particularly for off-grid or hybrid housing/workspace arrangements.
4. **Keep receipts and evidence**, because HMRC may adjust compliance checks or audit standards in light of the new rates and provisions.
## Broader implications
- Increased taxes on generation may spur more interest in energy efficiency or off-grid renewables
- The combined effect of vehicle and energy taxation underscores government emphasis on sustainability and emissions—something remote workers should consider when planning long-term stays
This Bill is **currently progressing through Parliament**, having had its key outlines announced. Once enacted, the rates will need close attention in budgeting for travel and workspace costs. ([commonslibrary.parliament.uk](https://commonslibrary.parliament.uk/research-briefings/cbp-10913/?utm_source=openai))