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Approved Mileage Allowance Payments (AMAPs) for use by employees of personal vehicles for business travel have been brought to the particular attention of the government recently. Bodies such as the Association of Tax Technicians and Unison; and MPs in parliamentary questions have called for an increase in AMAPs, in the light of recent fuel increases. Unison has called for an increase in payment to 63p per mile for the first 10,000 miles and 35p per mile for each mile over 10,000 (compared to the current levels of 45p per mile and 25p per mile respectively).
The RAC has pointed out that only about 1/3rd of the mileage allowance relates to fuel but has stated that other costs involved in driving have increased too. Prices for operation of personal transport equipment were around 27% higher in January 2023, compared to when the current AMAPs were set in 2011/12, prices for maintaining and repairing personal transport equipment was around 37% higher, and petrol and oil prices around 16% higher.
The Government currently has no intention to change the AMAPS. The government has pointed out that reimbursing employee business travel is fully at the discretion of the employer. Employers who do, may offer lower or higher rates than the current AMAPS. However, employers should note there is an implied contractual term in employment contracts that employees will be reimbursed expenses necessarily incurred in the proper performance of their duties.
Whilst employers use the current AMAPs as a reference, in the light of overall increases, employers may need to review their mileage allowances or face requests from employees and employee representative groups for increased mileage allowances. For example, current NHS rates are 59p for up to £3,500 miles and 24p over 3,500 miles.
https://researchbriefings.files.parliament.uk/documents/CBP-9742/CBP-9742.pdf
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