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<p>Approved Mileage Allowance Payments (AMAPs) are used by employers to reimburse
an employee’s expenses for business mileage in their private vehicle.</p><p> </p><p>The
government sets the AMAP rates to minimise administrative burdens.</p><p>Employees
can claim up to 45p per mile for the first 10,000 miles and the 25p per mile for subsequent
miles. The mileage thresholds reflect that the AMAP rates are designed to cover both
a proportion of fixed costs, such as insurance and VED, as well as ongoing costs such
as fuel.</p><p> </p><p>Employers are not required to use the AMAPs rates. Instead,
they can agree to reimburse a different amount that better reflects their employees’
circumstances. If an employee is paid less than the AMAP rate, they can claim Mileage
Allowance Relief (MAR) on the shortfall. However, where payments exceed the relevant
AMAP rate, there may be a tax and National Insurance charge on the difference.</p><p>
</p><p>Self-employed people can choose to use the simplified mileage rate, or they
can claim tax relief using capital allowances and actual expenses.</p><p> </p><p>As
with all taxes, the Government keeps the AMAP rate under review and any changes are
considered and announced at fiscal events.</p>
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