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Mileage Allowance Payments (MAPs) are what you pay your employee for using their own vehicle for business journeys.

You’re allowed to pay your employee a certain amount of MAPs each year without having to report them to HMRC. This is called an ‘approved amount’.

Work out the value

To calculate the ‘approved amount’, multiply your employee’s business travel miles for the year by the rate per mile for their vehicle.

Tax: rates per business mile

Type of vehicle

First 10,000 miles

Above 10,000 miles

Cars and vans

45p

25p

 

What to report and pay

Anything above the ‘approved amount’

You must:

  • report on form P11D
  • add anything above the ‘approved amount’ to the employee’s pay, and deduct and pay tax as normal

 

Anything below the ‘approved amount’

You won’t have to report to HMRC or pay tax, but:

  • your employee will be able to get tax relief (called Mileage Allowance Relief, or MAR) on the unused balance of the approved amount
  • you can make separate optional reports to HMRC of any such unused balances under a scheme called the Mileage Allowance Relief Optional Reporting Scheme (MARORS) – For further details please contact HMRC to join the scheme