Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of further support for (a) care staff and (b) other people who rely on their car for work in the form of a mileage uplift.

Approved Mileage Allowance Payments (AMAPs) are used by employers to reimburse an employee’s expenses for business mileage in their private vehicle.

AMAPs are intended to create administrative simplicity and certainty by using an average rate, which reflects vehicle running costs including fuel, servicing and depreciation. Fuel is therefore only one component, constituting around a third of total costs included within the rate.

Ultimately it is for employers to determine the rate at which they reimburse their employees. Therefore, the AMAP rate is advisory and employers can choose to pay more or less than the advisory rate. Employees who receive less than the AMAP rate can claim tax relief on the difference. Employees who receive more will not be taxed on the difference if they can provide evidence of the expenditure.

Most domiciliary care staff are employed by private providers who decide their mileage reimbursement rate.

Like all taxes and allowances, the Government keeps the AMAP rate under review.