Approved Mileage Allowance Payments (AMAPS)

The above statutory mileage rates are used to calculate the approved amount for mileage allowance payments, that is the maximum amount that can be paid free of income tax under the AMAPs legislation. These rates are also used to calculate the amount of any mileage allowance relief (MAR) available to an employee.

There is an additional exemption from tax for payments to employees using cars or vans (but not other kinds of vehicle) on business journeys for carrying as passengers fellow employees for whom the travel is also business travel. The passenger payment rate is 5p per mile.

For NIC purposes the qualifying amount, that is the amount that can be paid without the need to apply NIC, is 45p per mile regardless of the business mileage undertaken. Therefore the 10,000 mile threshold does not apply for the purposes of NIC.