WHAT is MAR and how does it differ from AMAPs?
Good question. And all with plenty of acronyms thrown in too.
So here goes with the difference between Mileage Allowance Relief (MAR) and Approved Mileage Allowance Payments (AMAPs).
Where a cash allowance is offered in lieu of a company car and employees then use their own cars for business, a good number of them will not claim the Mileage Allowance Relief that is available to them.
You should be aware of this when you fill in your Self-Assessment tax return.
Mileage Allowance Relief allows employees to claim the difference between what they receive in business mileage or fuel costs from their employer and what is approved by HMRC.
The MAR rate is currently set at
- 45p for the first 10,000 business miles and
- 25p per business mile thereafter in the tax year.
And yes, that is the same as the AMAPs rate.
We just wanted to let you know...