Glossary · UK
What is Approved Mileage Allowance Payment (AMAP)?
HMRC's approved tax-free rate for mileage payments to employees using their own vehicles for business travel: 45p per mile for the first 10,000 miles and 25p per mile above that.
Full Definition
Approved Mileage Allowance Payments (AMAP) are HMRC-set rates at which employers can reimburse employees for business use of their private vehicles without either party incurring income tax or NI. The rates for cars and vans are: 45p per mile for the first 10,000 business miles per tax year, 25p per mile for miles above 10,000. Additional rates: motorcycles 24p per mile (no upper limit), bicycles 20p per mile. If an employer pays less than the AMAP rate, employees can claim Mileage Allowance Relief (MAR) -- the shortfall -- through Self Assessment or PAYE adjustment form P87 (up to GBP 2,500). If an employer pays more than the AMAP rate, the excess is a taxable benefit reported on P11D. Self-employed individuals can choose to claim actual motoring expenses (fuel, insurance, servicing, depreciation) or use simplified flat-rate mileage (45p/25p for cars -- same as AMAP). The simplified expense method cannot be used if the business has previously claimed capital allowances on the vehicle. Fuel Advisory Rates (FARs) published quarterly by HMRC are separate from AMAP and apply only to company car fuel reimbursement.