Car Allowances

Treasury written question – answered on 7th September 2022.

Alert me about debates like this

Photo of Owen Thompson Owen Thompson SNP Chief Whip

To ask the Chancellor of the Exchequer, if he will make an assessment of the potential financial impact on local authorities of maintaining the present Approved Mileage Allowance Payment rate.

Photo of Owen Thompson Owen Thompson SNP Chief Whip

To ask the Chancellor of the Exchequer, whether the Government will adopt the NHS Agenda for Change mileage reimbursement rates.

Photo of Owen Thompson Owen Thompson SNP Chief Whip

To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of increasing Approved Mileage Allowance Payment rates.

Photo of Alan Mak Alan Mak The Exchequer Secretary

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.

Does this answer the above question?

Yes0 people think so

No0 people think not

Would you like to ask a question like this yourself? Use our Freedom of Information site.