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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 AMAP 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
are not required to use the AMAP rates. 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>The government also
sets Advisory Fuel Rates (AFRs) and the Advisory Electric Rate (AER) which are used
when an employer reimburses an employee for business travel in a company car, or when
an employee reimburses an employer for the cost of fuel used for private travel. These
rates are also advisory.</p><p> </p><p>The government keeps this policy under review.</p>
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