Government statement clarifies AMAP tax implications
09 September 2022
Alan Mak, the exchequer secretary to the Treasury, has made a statement clarifying the tax treatment of business milage payments.
Responses to previous questions on the subject of Approved Mileage Allowance Payments (AMAP) offered some incorrect advice. They stated Income Tax and National Insurance does not need to be paid for actual expenditure in relation to business mileage. However, this only applies to volunteer drivers.
Where employers reimburse over the AMAP rate, Income Tax and National Insurance will be due on the difference.
GOV.UK guidance is correct and has been throughout. HM Revenue and Customs (HMRC) will be working to bring this to the attention of employees and employers where needed.
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