08 June 2026
Following the recent announcement that the Approved Mileage Allowance payments (AMAPs) rates have been increased for the first time in 15 years, we wanted to gather insights into which method of payment was preferrable.
For our last Quick Poll we asked how do you or your client reimburse employees who drive their own car for business journeys?
And the results out of 197 respondents are:
|
Answer |
Percentage |
|
At the AMAP rate |
76.14% |
|
Below the AMAP rate |
14.21% |
|
Above the AMAP rate |
5.58% |
|
No mileage is paid |
4.07% |
The poll results suggest that paying employees mileage at the AMAP rate is the preferred method of reimbursement.
As a reminder, lets look at how the treatment of these options:
- at the AMAP rate: there is no tax and NIC deductions so the full amount can be reimbursed to the employee
- below the AMAP rate/ No mileage is paid: the AMAP rates are only the maximum tax-free amount, if not received from the employer the employee can claim Mileage Allowance Relief (MAR) either by submitting a claim on HMRC website or through a self-assessment tax return
- above the AMAP rate: any excess over this must be treated as earnings and is therefore subject to tax and National Insurance deductions. The excess should also be reported on the employee’s P11d.
Thank you for your responses, as always we appreciate your feedback.
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