What pence per mile should I be paying my drivers?
A business owner wants to know what the correct pence per mile they should be paying their employees for using private cars on business use. Editor Ralph Morton provides the answer
Have you got your mileage rates right?
The name for the payment rate – which is tax-free by the way – is called the Approved Mileage Allowance Payment (which you might see shortened to AMAP). It is there to cover not only the fuel costs, but the cost of business insurance, depreciation and wear and tear while your employee is using their private car on business.
HMRC publishes latest AFRs
The latest petrol and diesel prices are taken from the Department for Business, Energy and Industrial Strategy and the LPG (UK average) is from the Automobile Association website. You will not need to use the advisory rates where you can show that employees cover the full cost of private fuel by repaying at a lower mileage rate.
AMAPs: the tax-free rates to reclaim mileage for using a private car on business
Approved Mileage Allowance Payments - or AMAPs - are the correct tax-free business mileage rates to be used for reimbursing business mileage undertaken in a private car
As MP claims 3p for one car trip, are you claiming the correct business mileage
Before you start that business trip in your own personal car, do you know the correct business mileage rates you should be claiming? WOULD you claim 3p for a 100m car journey? We suspect not; and more to the point, we expect your business car manager or company director would throw out such a penny-pinching claim, too. If [...]
Companies in the dark over correct business mileage rates
It's 45p a mile mate - if it's your own car AN astonishing 25% of larger companies don't know how much they pay their staff for driving their own private cars on company business. The frank confession highlights a worrying lack of cost control - and if they pay too much, creating a taxable benefit for their employees. [...]