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The Budget made no change to AMAP rates.

The AMAP rates – or Approved Mileage Allowance Payments – are used by many small firms to reimburse business mileage undertaken in private vehicles.

The AMAP rates payable are 40p per mile for the first 10,000 miles; then 25p per mile thereafter.

If these Government-approved AMAP rates are used, then there is no taxation liability for a small business.

AMAP rates are the same for any size of car engine.

It was widely expected that the Chancellor might reform the AMAP rates to encourage more emission-friendly vehicles.

“The announcement of a new system was widely expected and still leaves a question mark over a future overhaul of the system,” commented Paul Roberts, a director of Lex leasing company’s Momentum consultancy team.

However, the use of private vehicles on business raises duty of care issues highlighted by the forthcoming Corporate Manslaughter Act.

A recent survey conducted by National Car Rental in conjunction with this magazine found that one in four businesses could be at risk of the new Act.

“Transport solutions have got to be easy to manage and cost-effective so it’s not a great surprise that many small businesses encourage staff to use private vehicles for business,” commented Frank Reynolds, small business specialist at National.

“However, something as everyday as a member of staff visiting the Post Office in their own car will now be covered by the new law.

“With the new Corporate Manslaughter legislation, businesses need to act quickly to ensure they have the policies in place that will protect their employees and their businesses from the consequences of an accident. While vehicle rental is not the sole solution, it should be a key element of a risk management strategy.”

Further information

    • Click here to understand more about AMAPs

 

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