Lord Berkeleyasked Her Majesty's Government: What are the maximum approved mileage rates for use of car and bicycle authorised by the Treasury; and whether use of higher rates attracts additional personal tax liabilities. [HL5]
The Parliamentary Under-Secretary of State, Department for Culture, Media and Sport (Lord Mclntosh of Haringey)The maximum approved mileage allowance payment (AMAP) which can be paid to employees without incurring tax and National Insurance is set by law at 40 pence per mile for the first 10,000 business miles and 25 pence for each additional56WA mile for all cars. The rate for other forms of transport is 24 pence per mile for motorcycles and 20 pence per mile for cycles.
If employers pay less than the AMAP rate, employees will be able to claim tax relief on the difference between the rate paid by their employer and the statutory rate. If employers pay more than the AMAP rate, the excess will be chargeable to tax and National Insurance contributions.