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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>Organisations are not required to use the AMAPs. Instead,
they can agree to reimburse the actual cost incurred, where volunteers 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 volunteers’ 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.</p>
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