Government petitioned to increase AMAP rates

A petition has been set up to ask the Treasury to increase the approved mileage allowance payment (AMAP) rates due to increasing fuel prices and concerns that the existing rates do not cover employees' driving costs. The current advisory rate is 45p/mile for the first 10 000 miles and 25p thereafter and applies to employees and volunteer drivers who use a private car for business mileage. The rate applies across all fuel types.

In response to the petition the Treasury said: ‘The AMAP rate is advisory and organisations are not required to reimburse at this level. It is ultimately up to the individual organisation to determine the rate of mileage reimbursement they offer employees or volunteers.

‘Organisations can agree to reimburse drivers the actual cost incurred where individuals can provide evidence of the expenditure without an income tax charge arising.’

However ...