In his Budget report, chancellor George Osborne announced that the approved mileage allowance payments (Amap) rates for an employee using their own car on a business trip will rise to 45p per mile for the first 10,000 miles.
After 10,000 miles, the rate will be 25 pence per mile.
Alastair Kendrick, director of employment tax services at Mazars, welcomed the change. “If you take account of the real cost of running a car on a business journey, including servicing, insurance and everything else to finance the car, the 45p still does not possibly fully reimburse [an employee] but it goes a better way than 40p.”
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Why wasn’t the mileage rate for motorcycles increased at the same time as well?
AT LAST !!
HOWEVER WHEN DOES THIS CHANGE BECOME EFFECTIVE FROM ?
The increase in Amap rates comes into effect from 6 April 2011.
Being one the thousands of volunteer drivers who support our local charities, I am grateful that we have an increase but I am disgusted that the allowance increase is only 5p.
We are all aware that the allowance has been 40p since 2002 when fuel was 72p ish a litre and is now approaching double that amount.
In effect, we are all having to pay the government to help THEM out, as usual. Wake up or you’ll lose a lot of valuable people.
Why is the rate still 25p after 10,000 miiles? Surely this should have increased to 30p at least? Happier with the 45p, but not with the 25p. I cover around 30,000 business miles per annum so this increase is only going to benefit me by £500. Humbug.
what are the rates for company cars where fuel is not provided
The rate is 45p a mile when the employee uses their own car and pays for the fuel themselves.
My employer only gives 33p/mile is that legal?
Yes it is legal. The rates are only a maximum thatyou can recieve without having to pay any income tax.Aobove the government rate you must pay tax on everything above the threshold.
If you have agreed to accept less, that is between you and the boss.
i onlyy get paid 33p pm but lose my first 30 miles everyday is this correct?
I would suggest to anybody who is receiving below the correct rate to take a taxi. I am pretty sure your employers will soon agree to given you the new rate.
you can claim back thje difference between 45p and what you get from your employer off the taxman via your self assessment form
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