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<p>The Government sets Approved Mileage Allowance Payments (AMAPs) 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 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 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.</p><p> </p><p>The Government keeps
this policy under review<strong>.</strong></p>
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