16 March 2010

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Business mileage in a private car: reimbursement rates in 2010/11

No changes to the AMAPs were announced as part of the Pre-Budget Report of November 2009. The 2010 Tax and National Insurance-exempted amounts claimable under the HM Revenue & Customs Authorised Mileage Allowances Payments (AMAPS) for business mileage in a private car remains the same since 2002.If your employer reimburses you at a lower rate than the AMAP rates, you are entitled to claim tax relief on the difference. Conversely, reimbursements made at a higher level than the AMAPs will incur tax.

The incentive to drive fewer miles will be strengthened by increasing the fuel benefit charge at least in line with the Retail Prices Index from April 2010.

AMAP rates 2010

	Up to 10,000 miles	Over 10,000 miles
All cars	40p	25p

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New Advisory Fuel Rates have been published by HM Revenue and Customs and come into force on July 1 2009, although they can be used immediately if employers wish to implement them.

Advisory Fuel Rates apply where employers reimburse employees for business travel in their company cars, or require employees to repay the cost of fuel used for private travel. They provide a range of rates based on engine size and fuel type, and when used, are deemed to be tax-free.

HMRC reviews the rates twice a year with changes introduced on January 1 and July 1. The new rates from January 2010:

Engine size Petrol Diesel LPG
1400cc or less 11p 11p 7p

1401cc to 2000cc 14p 11p 8p

Over 2000cc 20p 14p 12p

Petrol hybrid cars are treated as petrol cars.

The fuel duty multiplier will increase in April 2010 from £16,900 to £18,000 for company car drivers who take free fuel; for van drivers, the fuel benefit charge increases from £500 to £550.

Author: Lee Sibbald, April 4, 2008

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