Car Allowances

(asked on 16th March 2022) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of reviewing the HMRC approved Mileage Allowance Payment rates for workers required to use vehicles for work journeys in the context of increases in (a) the cost of petrol and diesel prices and (b) total motoring costs since rates were last reviewed in 2011-12.


Answered by
Helen Whately Portrait
Helen Whately
Minister of State (Department of Health and Social Care)
This question was answered on 21st March 2022

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

Employers are not required to use the AMAPs rates. Instead, they can agree to reimburse the actual cost incurred, where individuals can provide evidence of the expenditure, without an Income Tax or National Insurance charge arising.

Alternatively, they can choose to pay a different mileage rate that better reflects their employees’ circumstances. However, if the payment exceeds the amount due under AMAPs, and this results in a profit for the individual, they will be liable to pay Income Tax and National Insurance contributions on the difference.

The Government keeps this policy under review.

Reticulating Splines