On the fifth day of Taxmas, we advised to thee on mileage allowance payments to employees...
In the season of cheer, employees may be using their personal vehicles for business journeys far or near.
MAPs cover costs, for business travels so grand, fuel, wear, and tear, all expenses at hand.
Employers can pay the allowance to make things right, if they use the approved amount, there will be no tax in sight.
To find the approved amount, here’s what you do, multiply the business miles travelled by the rate that’s true.
For the first ten thousand, the rates are clear, forty-five pence per mile for cars and vans, bringing festive cheer.
For motorcycles, it’s twenty-four pence, and for bikes, twenty pence makes sense.
Above ten thousand miles, things take a turn, twenty-five pence for cars and vans, make sure you learn.
Motorcycles stay at twenty-four pence, and bikes at twenty.
Employers can pay a rate above the approved amount, but there is one key thing to take into account, tax on the excess is due, as well as some national insurance too.
Keep records detailed, for each trip you take, dates, destinations, and miles you make.
So, as you travel this festive season, remember MAPs, for a good reason.
If you need any help with the exemption, please contact our helpful UNW elves at employmenttaxesteam@unw.co.uk.
