Car Allowances

Treasury written question – answered on 7th July 2022.

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Photo of Kenny MacAskill Kenny MacAskill Alba, East Lothian

To ask the Chancellor of the Exchequer, pursuant to the Answer of 31 March 2022 to Question 148399, on Car Allowances, and in the context of the recent increase in fuel prices, whether he has plans to (a) review and (b) change the mileage rate authorised by HMRC.

Photo of Simon Clarke Simon Clarke The Chief Secretary to the Treasury

The Approved Mileage Allowance Payments (AMAP) rates aim to reflect the running costs of a car including fuel, servicing and depreciation.

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, no Income Tax or National Insurance charge arises.

The Government keeps all taxes, including AMAP rates under review. Any changes are considered by the Chancellor.

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