Approved Mileage Allowance Payments for Fleets

The cost of delivering goods, meeting clients or commuting between work locations can soon rack up. This is true for both large fleets and smaller businesses. If your employees use their own private car for work journeys, Approved Mileage Allowance Payments (AMAPs) make it easier to help them with the cost.

AMAPs are designed to simplify the process of reimbursing employees for the cost of using a private car for business purposes and are more than just a fuel allowance. They are also designed to include associated costs, such as depreciation, extra servicing, tyres and maintenance.

Set annually by the government, the current reimbursement rates are:

Driver’s annual business mileage

First 10,000 miles

Above 10,000 miles

All passenger cars

45p per mile

25p per mile

AMAPs are based on annual mileage per driver (not for each individual vehicle). So, an employee that covers 10,000 business miles in each of two different cars would be eligible to receive 45p per mile for the first 10,000 miles travelled, the second 10,000 miles being eligible for the reduced amount of 25p per mile.

Reimbursing employees within these rates won’t increase their tax liability.

Click here to learn about Advisory Fuel Rates (AFRs)

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