Budget 2011: Approved mileage allowance payments to rise to 45p

In his Budget report, chancellor George Osborne announced that the approved mileage allowance payments (Amap) rates for an employee using their own car on a business trip will rise to 45p per mile for the first 10,000 miles.

After 10,000 miles, the rate will be 25 pence per mile.

Alastair Kendrick, director of employment tax services at Mazars, welcomed the change. “If you take account of the real cost of running a car on a business journey, including servicing, insurance and everything else to finance the car, the 45p still does not possibly fully reimburse [an employee] but it goes a better way than 40p.”

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