Approved Mileage Allowance Payments (AMAPs) are used by employers to reimburse an employee’s expenses for business mileage in their private vehicle.
AMAPs are intended to create administrative simplicity and certainty by using an average rate, which reflects vehicle running costs including fuel, servicing and depreciation. Fuel is therefore only one component.
The AMAP rate is advisory and employers can choose to pay more or less than the advisory rate – it is therefore ultimately up to employers to determine the rate at which they reimburse their employees. Employees who receive less than the AMAP rate can claim tax relief on the difference. Employees who receive more will be taxed on the difference.
Like all taxes and allowances, the Government keeps the AMAP rate under review.