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<p>The Government sets the Approved Mileage Allowance Payments (AMAPs) rates to minimise
administrative burdens. AMAPs aim to reflect running costs including fuel, servicing
and depreciation. Depreciation is estimated to constitute the most significant proportion
of the AMAPs.</p><p> </p><p>Employers, including the NHS, are not required to use
the AMAPs. 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.</p><p> </p><p>Alternatively, they can choose to pay a different mileage
rate that is higher or lower than AMAPs. 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.</p><p> </p><p>The
Government keeps this policy under review.</p>
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