Understanding the approved mileage allowance payments rules

Key points

• The approved mileage allowance payment (AMAP) rules came in to place in 2002 and have not changed since.
• A qualifying journey does not cover a commuting journey or mileage which covers a route in part or in full which is similar to the usual commute.
• Many employees’ work patterns changed during Covid-19 and there may be uncertainty over where a person is ‘based’.
• HMRC is likely to focus on the mileage logged information and use information technology tools to see if the mileage looks right.
• AMAP can be claimed for a qualifying journey only if the employee personally was driving the vehicle.

The tax and National Insurance rules on mileage allowance payments have not changed for a considerable number of years but despite this I still see a lot of confusion over what is permitted.

There are specific tax rules for employees who undertake business mileage in...