Mileage Allowance Payments (MAPs) are what you pay an employee or director for using their own vehicle for business journeys.
A business can pay an employee or director a certain amount of MAPs each year without having to report them to HMRC. This is called an ‘approved amount’.
To calculate the ‘approved amount’, multiply the individual’s business travel miles for the year by the rate per mile for their vehicle.
Tax: rates per business mile
Cars and vans
First 10,000 miles: 45p
Above 10,000 miles: 25p
Motorcycles
First 10,000 miles: 24p
Above 10,000 miles: 24p
Bikes
First 10,000 miles: 20p
Above 10,000 miles: 20p
The business should ensure that the following records are kept supporting each claim:
- A log of the date of each journey and location
- The number of business miles driven
Advice and guidance can vary on a case by case basis, so if you would like to obtain further information, including an answer tailored to your specific circumstances, please get in touch as we would be more than happy to help.
