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.