If you employ a nanny in the UK, working out the correct mileage rate can be confusing. Families are often unsure which journeys count, what rate should be paid, and whether mileage needs to be tracked for tax or payroll purposes.
This guide explains the current UK nanny mileage rates for 2026, when they apply, and how mileage should be recorded correctly. It also covers common mistakes families make when reimbursing travel costs and how to avoid underpaying or overpaying your nanny.
Below you’ll find a clear breakdown of the rates, a simple mileage table, and guidance on tracking mileage accurately for payroll and records.
Nanny Mileage Rate UK (2026)
- First 10,000 miles: 45p per mile
- Over 10,000 miles: 25p per mile
- Applies to work-related travel only
Source: HMRC approved mileage rates
What the nanny mileage rate means
The nanny mileage rate is the amount you can reimburse your nanny for work-related travel when they use their own vehicle. These rates are set by HMRC and can be paid tax-free when applied correctly.
Mileage reimbursements are classed as expenses, not wages, and should be recorded separately from hourly pay.
Who the mileage rate applies to
The UK mileage rate applies when:
- A nanny uses their own car for work duties
- Travel is required as part of the role
- Journeys are made during working hours
It applies to:
- Full-time nannies
- Part-time nannies
- Live-out nannies
- Nannies working for multiple families
What counts as mileage (and what does not)
Mileage that counts:
- School or nursery drop-offs and pick-ups
- Driving children to activities or appointments
- Work-related errands during paid hours
- Travel between families when working split roles
Mileage that does not count:
- Travel from the nanny’s home to the family home
- Personal errands
- Non-work-related journeys
Common mistakes to avoid
- Paying mileage for normal commuting
- Using outdated mileage rates
- Mixing mileage payments into wages
- Failing to track mileage consistently
- Not keeping records for payroll or HMRC checks
Tracking nanny mileage manually
Mileage tracking example:
| Date | Journey | Miles | Rate | Total |
| 15th January 2026 | School run | 4 | 0.45p | £1.80 |
| 15th January 2026 | Soft play visit | 5 | 0.45p | £2.25 |
| … | … | … | … | … |
Tracking nanny mileage automatically
Tracking mileage manually can work at first, but once journeys add up it becomes easy to miss entries or miscalculate totals.
Nanny Admin tracks mileage alongside time, leave, and expenses in one place and exports everything ready for payroll, removing guesswork and manual spreadsheets.
Track nanny mileage automatically with Nanny Admin
FAQs
Do nanny mileage rates vary by city?
No. Mileage rates are set nationally by HMRC and do not vary by location.
Can I pay above the HMRC mileage rate?
Yes, but any amount above the approved rate may be taxable.
Is mileage taxable income for a nanny?
Mileage paid within HMRC approved rates is not taxable income.
Do I need to keep mileage records?
Yes. Clear records protect both families and nannies if questions arise