Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she plans to update the HMRC mileage rate to reflect changes to (a) fuel costs, (b) vehicle asset depreciation and (c) vehicle running costs since 2011.

The Approved Mileage Allowance Payment rates are used by employers to reimburse an employee's expenses, tax free, for business mileage in their private vehicle. These rates are also used by self-employed drivers to claim tax relief on business mileage (when using simplified motoring expenses), and can be used by organisations to reimburse volunteers who use their own vehicle for voluntary purposes.

Employees can claim up to 45p/mile for the first 10,000 miles annually, followed by up to 25p/mile thereafter. An additional 5p/mile can be claimed for each passenger transported.

The AMAP rates are not mandatory, and employers can choose to pay more or less than the AMAP rate. It is therefore ultimately up to employers to determine the rate at which they reimburse their employees.

The government keeps all taxes under review and the Chancellor makes decisions on tax policy at fiscal events.