Employee vehicles: Mileage Allowance Payments (MAPs)

10th June 2019

MAPs are what you pay your employees for using their own vehicle for business journeys.

You can pay your employees an approved amount of MAPs each year without having to report them to HMRC. To work out the approved amount, multiply your employee’s business travel miles for the year by the rate per mile for their vehicle.

If you pay your employees more than the approved amount you are required to report it on Form P11D and add anything above to the employee’s pay, and deduct and pay tax as normal.

Anything below the approved amount is not required to be reported to HMRC or pay tax on, but your employee can claim Mileage Allowance Relief or MAR on the unused balance of the approved amount.

You can also make separate optional reports to HMRC of any unused balances under a scheme called Mileage Allowance Relief Optional Scheme (MARORS) – You will have to contact HMRC to join the scheme.

Type of vehicle Rate per business mile 2019 to 2020
Car For tax purposes: 45 pence for the first 10,000 business miles in a tax year, then 25 pence for each subsequent mile
For National Insurance purposes: 45 pence for all business miles
Motorcycle 24 pence for both tax and National Insurance purposes and for all business miles
Cycle 20 pence for both tax and National Insurance purposes and for all business miles

For Example

Your employee travels 12,000 business miles in their car – the approved amount for the year would be £5,000 (10,000 miles x 45p plus 2,000 x 25p)

Find out more about reporting and paying MAPs.

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