Online
News - Business News - Date: July
2008
Employees’ Mileage
Payments
As you may be aware there is a statutory system of tax
and NIC free mileage rates for business journeys in an
employee’s own vehicle. These mileage payments are
known as ‘Authorised Mileage Allowance Payments’ (AMAP).
The statutory rates for the current tax year are:
|
Rate per mile |
Up to 10,000 miles |
40p |
Over 10,000 miles |
25p |
Employers can pay up to the statutory amount without generating
a tax or NIC charge. Where employers pay less than the
statutory rate (or make no payment at all) employees can
claim tax relief on the difference between any payment
received and the statutory rate.
The Chartered Institute of Taxation (CIOT) has asked the
government to look again at the level of AMAP as the rates
have remained unchanged since 2002. The AMAP rates are
designed to cover the full cost of the business travel,
which includes depreciation of the vehicle, servicing and
insurance costs. Fuel is clearly a major part of the costs
and with the significant increases in fuel prices recently
the rates should perhaps be reconsidered.
Colin Ben-Nathan, Chairman of the CIOT’s Employment
Taxes Sub-Committee, said:
‘We ….. suggest that with the recent significant
increase in fuel costs it is time for Ministers to look
again at the statutory AMAP rates of 40p/25p per mile for
those using their own cars for business travel.’
It will be interesting to see if the government makes
any changes to the rates. We will of course keep you informed.
Internet Link:
CIOT
article
For further information, please contact us
on +44 113 389 6200 or email enquiries@kirknewsholme.co.uk
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