Car Allowances

(asked on 6th July 2022) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 16 June 2022 to Question 17079 on Car Allowances, if his Department will make an estimate of the number of employers who reimburse the actual mileage cost incurred rather than using Approved Mileage Allowance Payments; and if he will adjust the 45p per mile allowance.


Answered by
Alan Mak Portrait
Alan Mak
Minister of State (Department for Business and Trade) (jointly with the Cabinet Office)
This question was answered on 14th July 2022

The Government sets the Approved Mileage Allowance Payments (AMAP) rates to minimise administrative burdens. As set out in the answer to Question 17079, the AMAP rates are advisory and therefore employers are not required to use them.

AMAPs are reimbursed free from Income Tax and National Insurance Contributions. This is also the case when an employer chooses to reimburse the actual mileage cost or pay another rate where there is no profit element for the employee. These payments are not declared to HMRC. The Government does not have an estimate of the number of employers reimbursing the actual cost.

As with all taxes and allowances, the Government keeps the AMAP rates under review and any changes are considered by the Chancellor.
Reticulating Splines