Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the adequacy of the current rate of the car mileage allowance; and if he will make it his policy to increase that allowance in light of the rising cost of (a) fuel and (b) servicing and maintenance of vehicles.

The Government sets the Approved Mileage Allowance Payments (AMAPs) rates to minimise administrative burdens.

Organisations are not required to use the AMAPs rates. Instead, they can agree to reimburse a different amount that better reflects their employees’ circumstances. However, tax is charged on any payment received by employees which exceed the AMAPs rate.

This policy is kept under review by the Government.