AMAP's - Approved Mileage Allowance Payments

Approved Mileage Allowance Payments – Minimising Tax

Set by HM Revenue & Customs twice yearly and payable by employers to drivers using their own car for business use, AMAPs are tax & NI free and are payable at the following pence per mile rates:

•  40p for first 10,000 business miles in the tax year.

•  25p for all business miles thereafter in the tax year.

These AMAPs can be used by businesses to offset the cost of providing a Cash Allowance, thus maximising tax efficiency.  They are an essential component in the Optifleet ECO options, and also in the Opticash tax efficient car allowance program.

Using the Opticar mileage recording function to optimise AMAPs usage is how a company can really save costs and maintain a validated mileage record for all drivers.

The mileage recorded enables us to allocate AMAPs to every single business mileage driven each month, and prepare a payroll report for each driver that maximises the TAX and NI free payment opportunity. There are no overestimations and no under allocations, so no reconciliation is ever needed.

The management of AMAPs within a scheme can be very complex and requires a robust and HMRC compliant management system to avoid unnecessary tax bills and AMAP wastage - which is exactly what Optifleet delivers.