Under the Approved Mileage Allowance Payments (AMAP) Scheme employers can pay employees tax-free mileage rates when they use their own car for business. Provided that the amounts paid do not exceed the approved rares set by the Tax Office, no tax or national insurance liability arises and there is nothing to report to the Tax Office on form P11d
However, many employees are unaware that they can claim a tax deduction for the shortfall if their employer pays them less than the approved rate. The current approved rates are 45p/mile for the first 10,000 miles in a tax year and 25p/mile thereafter. Please contact Paul on 0161 962 1855 to make your claim.