Glossary · UK
What is Approved Mileage Allowance Payment (AMAP)?
HMRC-approved mileage rates for employees using their own vehicle for work: 45p/mile (first 10,000 miles), 25p/mile thereafter; motorcycles 24p, bicycles 20p.
Full Definition
Approved Mileage Allowance Payments (AMAPs) are the HMRC-approved rates at which employers can reimburse employees who use their own vehicles for business travel, without the reimbursement being subject to Income Tax or National Insurance. The current AMAP rates are: cars and vans -- 45p per mile for the first 10,000 business miles in a tax year, and 25p per mile above 10,000 miles; motorcycles -- 24p per mile for all business mileage; bicycles -- 20p per mile for all business mileage. These rates have not changed since April 2012 for cars and vans. If an employer pays a mileage allowance below the AMAP rate, the employee can claim Mileage Allowance Relief (MAR) from HMRC for the difference -- either through Self Assessment or by submitting form P87. If an employer pays above the AMAP rate, the excess is a taxable benefit in kind (BIK) that must be reported on form P11D (or through payrolling), and Class 1A National Insurance is due on the excess. AMAP rules apply to business travel -- that is, travel for the purposes of the employer's business -- and not to ordinary commuting between home and a permanent workplace. Passengers in the same vehicle may attract an additional 5p per mile per passenger for business journeys, which is also exempt from tax if paid within that rate.