Approved Mileage Allowances
Posted on 2nd June 2023 by Joanne Stoneman
Employers can pay their employees tax and NI-free payments for business mileage in privately owned cars, vans, motorcycles and bicycles. HMRC calls these approved mileage allowance payments (AMAPs).
Employers can pay their employees tax and NI-free payments for business mileage in privately owned cars, vans, motorcycles and bicycles. HMRC calls these approved mileage allowance payments (AMAPs).
There are two AMRs for cars and vans. You can pay employees 45p per mile tax and NI free for the first 10,000 business miles they travel in a tax year, and 25p for additional mileage. The 10,000-mile limit is reset at the start of each tax year.
Care must be taken, over the tax year-end, and in particular mileage from 1st of April to the 5th of April. Often employees will reset the mileage, and claim 45p for that period, which would be an overclaim. Employers should check carefully April mileage claims to avoid falling into this trap.