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Upper Tribunal decision in Laing O’Rourke Services Ltd and Willmott Dixon Holdings Ltd

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Wheels can keep on rolling

This is a landmark ruling and the draft decision was released to the instructing agents on 3 July 2023 (see Synopsis). Ironically this was the same day that MPs were debating whether the 45p approved mileage allowance payment (AMAP)/mileage allowance relief rates should be increased to 60p a mile (tinyurl.com/govhansard3july). That rate has been the same since 2011 despite motoring costs having increased substantially since then.

Synopsis

It was stated in the debate that the AMAP rate is only advisory and taxpayers can claim a higher rate provided there is no profit element but if a fixed rate is paid and it exceeds AMAP rate the excess is taxable and subject to National Insurance.

That debate is outside the scope of this article but it was proposed and is hoped that the AMAP rate does increase from 45p to 60p in the next...

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