PARLIAMENTARY WRITTEN QUESTION
Mileage Allowances (5 September 2024)

To ask the Chancellor of the Exchequer, if she will make an assessment of the impact of the HMRC mileage rate for reimbursing the use of private cars on (a) volunteer drivers and (b) organisations in the volunteer sector; and if she will take steps to review the mileage payment allowance.

Asked by:
Manuela Perteghella (Liberal Democrat)

Approved Mileage Allowance Payments (AMAPs) are used by employers to reimburse an employee's expenses for business mileage in their private vehicle.

Voluntary organisations reimbursing volunteers can either use the AMAP rates or reimburse the actual cost incurred. Actual costs above the AMAP rate can be reimbursed without incurring a tax liability, so long as drivers can provide evidence of their costs. It is ultimately up to the voluntary organisation to determine the amount they reimburse to volunteers.

The AMAP rate is intended to reflect both running costs (such as fuel) and a proportion of standing costs (such as insurance, MOT and depreciation). Therefore, in estimating typical motoring costs per business mile the Government must consider the weighting given to each component and how to apportion certain costs.

As with all taxes and allowances, the Government will continue to keeps the AMAP rate under review. Any changes to the AMAP rates will be announced by the Chancellor at fiscal events.

Answered by:
James Murray (Labour)
7 October 2024