Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she plans to require HMRC to review 2010 mileage rates to reflect 2025 costs.

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 the Approved Mileage Allowance Payments (AMAPs) rate under review and HMRC use a variety of information in estimating typical motoring costs per business mile. This includes information from the AA, the National Travel Survey, the Association of British Insurers, and the Department for Energy Security and Net Zero.