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Written question asked by Kanishka Narayan (Labour) on Monday, 19 May 2025, in the House of Commons. It was due for an answer on Wednesday, 21 May 2025. It was answered by James Murray (Labour) on Wednesday, 28 May 2025 on behalf of the Treasury.

Mileage Allowances

Question

To ask the Chancellor of the Exchequer, whether her Department plans to review the Approved Mileage Allowance Payment rates for employees who use their own vehicles for work purposes, in the context of trends in the level of (a) fuel and (b) maintenance costs.

Answer

Approved Mileage Allowance Payments (AMAPs) are used by employers to reimburse an employee’s expenses for business mileage in their private vehicle.

The rates for cars are 45 pence per mile for the first 10,000 miles and 25 pence per mile thereafter. These rates are arrived at after considering a range of factors including:
• the costs of motoring per business mile for a range of cars and mileages;
• the transport needs of business;
• the cost to the Exchequer of changing the rate; and
• the overall fiscal position


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.

Secondary information

Type
Written question
Reference
53255
Session
2024-26
Subjects
Costs Motor vehicles Mileage allowances
Link
View this Written question on www.parliament.uk