PART 2: TAX
This and all other schemes were replaced in April 2002 by AMAPs and then on 6th April 2016 this was renamed MAPs. These established a tax-exempt mileage rate that employers can pay to employees using their own vehicles for business travel, subject to two main conditions, they must: • be paid to employees for the use of their own car, van, motor cycle or bicycle for business travel • not exceed the amount that is equal to the number of business miles multiplied by the appropriate mileage rate. Mileage allowance payments that employers make to employees for the use of their own cars for business travel will not be subject to NICs provided the rates paid do not exceed the up to 10,000 miles AMAP rates. Amounts paid in excess are to be added to earnings for the purpose of calculating the Class 1 NICs liability. Where an employee has more than one employment with the same employer, or associated employers, the business miles travelled in the employee’s own vehicle are to be aggregated. COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS Current Approved Mileage Allowance Payment Rates - from 6th April 2002 Date from Motor Cars / Vans M/Cycles Bicycles Passengers Up to 10,000 miles Over 10,000 miles Per passenger pence pence pence pence pence 06/04/2002 40 25 24 20 5 Where payments do not exceed the MAP rates there is no requirement to report on the year-end return P11D. Where the payment is less than the published MAP rate the employee is entitled to claim an additional tax deduction on the shortfall. Until about April 2016 HMRC applied a rule which meant that for the passenger addition to be allowed, the passenger, or passengers had to be travelling to the same destination and for the same reason as the driver. A more relaxed approach is now taken. N printing, copying or reproduction permitted. 06/04/2011 45 25 24 20 5 MAPs and dispensations From 6th April 2002 dispensations, or parts of dispensations, relating to payments for travel in an employee’s own vehicle ceased to be valid. No new dispensations are being issued. Dispensations cease to be valid from 6th April 2016. ADVISORY FUEL RATES Fuel only rates for company cars were introduced in January 2002. Where an employer reimburses an employee for business travel in their company car, or requires an employee to
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