Tax Tip Week 36 - Company Car versus AMAP's
Recently HMRC released new rates for business mileage for company cars effective from 1st December 2009. Interestingly enough, the AMAP’s rates that many of us claim (approved mileage allowance payments) remain unchanged since 2002.
When the AMAP rates were set at 40p for the first 10,000 miles reducing to 25p per mile thereafter, petrol was an averageof 44% cheaper than it is of today. And not only have fuel prices gone through the roof; this also has a knock on effect to most other related costs including servicing and insurance.
With the Standard VAT rate reverting to 17.5% 1st January this will further increase costs.
It's worth spending a few minutes in comparing the costs, each case will be unique. For full information please see our guide on Company Cars v AMAPs in our Knowledgebase.