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Written question asked by Patricia Gibson (Scottish National Party) on Friday, 11 March 2022, in the House of Commons. It was due for an answer on Wednesday, 16 March 2022 (named day). It was answered by Helen Whately (Conservative) on Wednesday, 16 March 2022 on behalf of the Treasury.

Mileage Allowances

Question

To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of increasing Mileage Allowance Payments in the context of the recent increase in petrol and diesel prices.

Answer

The Government sets the Approved Mileage Allowance Payments (AMAPs) rates to minimise administrative burdens.

Organisations are not required to use the AMAPs rates. Instead, they can agree to reimburse the actual cost incurred, where individuals can provide evidence of the expenditure, without an Income Tax or National Insurance charge arising.

Alternatively, they can choose to pay a different mileage rate that better reflects their employees’ circumstances. However, if the payment exceeds the amount due under AMAPs, and this results in a profit for the individual, they will be liable to pay Income Tax and National Insurance contributions on the difference.

The Government keeps this policy under review.

Secondary information

Type
Written question
Reference
138314
Session
2021-22
Subjects
Fuels Prices Mileage allowances
Link
View this Written question on www.parliament.uk