HMRC consultation open on Amaps

HM Revenue & Customs (HMRC) has published an open letter asking for comment on three possible changes to the current structure of Approved Mileage Allowance Payments (Amaps).

In looking at possible ways that the current structure of Amaps might be changed, HMRC indicates it will be looking at: an option for adjusting the rates and threshold to better reflect differing costs of drivers using their own cars for business, possibly changing the structure to encourage drivers to be more environmentally aware by linking Amaps to carbon dioxide emissions, and thirdly by combining the first two proposals and offering a more composite approach linking a carbon dioxide emissions with a change to both rates and thresholds.

This is part of HMRC’s review of employee car ownership schemes, and the interaction with company car tax and mileage payments which is still ongoing. The closing date for comments is 31 July 2007.