What are approved mileage allowance payments (MAPs)?

If having a company car isn’t open to you, then unless you want to spend your life on public transport there’s only one practical option – running your own car.

However, this can also be a pretty costly choice, because you have to dig out your credit or debit card to pay for not only fuel, but also tyres, brakes, the transmission and even consumable such as wiper blades and bulbs.

Not only that, but you’ll need to get the car serviced more often, because the mileage will be skyrocketing. And just to rub salt into all of this expense, you’ll be paying for business car insurance. You’re also shelling out money you’re not even aware of, because your car will be depreciating much more rapidly than it might otherwise have done.

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The only fair thing for your employer to do is reimburse you properly, which is why His Majesty’s Revenue and Customs (HMRC) publishes mileage allowance payment (MAP) rates; these show you and your employer just how much HMRC thinks you should be paid back before you’ll be liable for tax.

Read on to find out the current rates and the answers to all of your MAP queries.

How much can I claim in mileage allowance payments (MAPs)?

Obviously, the final sum that you can claim depends on just how many business miles you’ve driven. The number of miles you’ve covered also has an effect on the reimbursement rates, because HMRC applies a more generous rate to the first 10,000 miles you’ve driven in the year.

Up to the 10k mark, you can claim 45p per mile. However, once you breach the 10k limit, the rate is immediately reduced to 25p per mile. So a driver covering 12,000 miles in a year could claim £5,000 (10,000 x 45p, plus 2,000 x 25p). 

These are the current MAP rates, which have actually been in force since the 2011/2012 tax year:

The current approved mileage payment rates

Do the MAP rates vary depending on the type of car I drive?

Nope, they do not, so you’ll be reimbursed the same amount no matter whether you drive a petrol, diesel or electric car. And the same rates apply even if you happen to drive a car with a large engine that drinks more fuel.

However, this also means that the system works in your favour if you drive a car with a smaller, more economical engine.

To find the most efficient models, see our Real MPG page

Read more: Company cars glossary

Do MAP rates apply to electric cars and vans?

They certainly do, so if you have a battery electric vehicle you can claim the same 45p per mile for the first 10,000 miles and 25p per mile after that, which could pay dividends if you can charge your car cheaply at home.

How can I make the most of the MAP rates?

Common sense is your friend when it comes to MAP reimbursements, so if you want to make the most of the rates you should run a small car with a small engine.

Such small cars are also cheaper to insure, and use smaller, less expensive parts for consumables such as the brakes and tyres. They tend to wear those parts out more slowly, too.

But if you really want to game the system, you can skip using the car altogether. This only works if you’re attending meetings that are relatively nearby, because you can then use a bicycle to get to them.

Even though you’re not using any fuel etc, you’ll still be eligible for a reimbursement rate of 20p per mile, which is a whole lot more than you’ll spend on bicycle consumables. Okay, this won’t work for longer journeys, but is well worth it if your journey profile fits.

Read more: The cheapest fleet cars for BIK tax

What if my employer pays less than the MAP rate?

Your employer does not legally have to reimburse at the full MAP rates. That’s the bad news. The good news is that you can claim tax relief on the unused balance of the approved amount.

This balance is termed Mileage Allowance Relief (MAR). You need to record each and every work journey, detailing the date and distance travelled, if you’re to claim this.

Then it’s time for sums – firstly, you have to work out how much you would have been paid using the approved MAP rates, then subtract the amount you’ve actually been paid. You can claim tax relief on the difference.

Read more: Company car tax explained

Can I claim more than MAP rates?

Only if your employer is generous enough to pay more. But bear in mind that if you do get more than the MAP rate, HMRC will deem you liable for tax on the extra reimbursement.

Do MAP payments cover all running costs?

Probably not (unless you visit clients on a bicycle), but the amount you’ll be paid back should cover most of the expense incurred in running your own vehicle. However, you’ll need to lodge separate claims for other incidental expenses on a journey, such as road tolls or parking fees.

Are MAPs the same as AMAPs?

They are indeed. Mileage allowance payments (MAPs) can often be called approved mileage allowance payments (AMAPs). They are one and the same thing.

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