Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the effectiveness of Approved Mileage Allowance Payments rates in meeting the costs incurred by employees using their own vehicles for work-related travel.

Approved Mileage Allowance Payments (AMAPs) are used by employers to reimburse an employee’s expenses for business mileage in their private vehicle. These rates are also used by self-employed drivers to claim tax relief on business mileage (simplified motoring expenses).

The Government keeps the AMAP rates under review and HMRC use a variety of information in estimating typical motoring costs per business mile. This includes information from the AA, the National Travel Survey, the Association of British Insurers, and the Department for Energy Security and Net Zero.

The AMAP rates are intended to reflect both running costs, such as fuel, and a proportion of standing costs, such as insurance, MOT, and depreciation. In estimating typical motoring costs per business mile, the Government must therefore consider the weighting given to each component and how to apportion certain costs.