uk mileage rates: how to claim your business miles
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How to Claim Your Business Miles
a less taxing guide to uk mileage rates
www.tripcatcher.co.uk
What is AMAP?
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AMAP stands for:
“Allowed Mileage Allowance Payment”
It is a tax-free payment for drivers who
make business trips using their own vehicle.
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It applies to business journeys by car, van, motorbike or bicycle.
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AMAP is intended to cover the employee’s mileage-related business expenses, including:
Fuel;Servicing;Tyres;Car tax;Insurance;Depreciation.
AMAP also covers the interest on any loans taken out to buy the vehicle.
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AMAP is the maximum that can be claimed tax-free.
As long as mileage payments do not exceed AMAP limits, these payments are free from income tax and national
insurance.
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How do I calculate AMAP?
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For journeys made by car or van, the payments are 45p per mile for the first 10 000 miles and 25p per mile thereafter.
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For journeys made by motorbike, the rate is 24p per mile, regardless of mileage.
For journeys made by bicycle, the rate is 20p per mile, regardless of mileage.
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How is AMAP paid?
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AMAP is paid by the employer directly to the driver of the vehicle.
If the employer pays less than the allowance, the shortfall can be claimed against the driver’s income tax.
However, it can only be offset against income tax paid from earnings from this employer.
How do I claim AMAP?
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AMAP can be claimed directly from your employer, or as an expense on your tax
return.
If your employer pays less than the allowance, the shortfall can be claimed
against your income tax.
However, it can only be offset against income tax paid on earnings from this
employer.
The HMRC requires accurate records to be kept of business trips.
These should include:The date of travel;The reason for the journey;The miles covered;The type of transport used.
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It doesn’t matter how many cars or vans you drive during the year: they all count as the same vehicle.
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Claims for travel by motorbike and bicycle must be
kept separate from claims for travel by car or van.
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Can I claim for passengers?
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If passengers are employed by the same employer as you, then you can claim an additional 5p per mile, per passenger, from
the employer.
However, you must be driving a car or van.
You cannot claim for carrying passengers on your bike or
motorbike.
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Do I have to take the most direct route to
claim?
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For example, on journeys near London it
might be quickest to take the M25
around London, rather than passing...
...through it.
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No.
You can use whichever route seems
sensible.
Can I claim AMAP for commuting to work?
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No. The commute to work is not considered a business journey.
To be considered a valid business trip, the journey must be:
“From one workplace to another, for the purpose of work.”
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Has the 2011 Budget made a difference?
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Yes.
Before 6th April 2011, drivers of cars and vans could claim 40ppm for the first 10 000 miles.
Now, drivers of cars and vans can claim 45ppm for the first 10 000 miles.
If you’re calculating your mileage for a date before 6th April 2011, don’t forget to use the old rate.
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