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Realise Savings

Clearly one of the key objectives is to realise savings for the company. This is mainly achieved by using HMRC Approved Mileage Allowance Payments (AMAP) as a major component in the net monthly compensation to employees taking the cash or Personal Car Contract option. Any remaining balance is paid as net salary and grossed up by the company to cover the employees’ tax and NI as well as employers NI, so the higher the business mileage as a proportion to total mileage the better.

AMAPs are paid at the end of each month following the submission of mileage logs by employees, and balanced with a net salary adjustment. Consequently, only the correct AMAPs are paid out in any tax year, with a validated audit trail for HMRC purposes.

Where employee's business mileage falls below the calculated break-even point, they will find that the company car is their least-cost route, and the Employee Owned content of your fleet is therefore optimised.