The Government has become aware of a technical inaccuracy in its responses to a number of Parliamentary Questions, correspondence and a Parliamentary e-petition response on the subject of Approved Mileage Allowance Payments (AMAP) from March to August 2022.
The response stated that actual expenditure in relation to business mileage could be reimbursed free of Income Tax and National Insurance contributions. This is in fact only possible for volunteer drivers. Where an employer reimburses more than the AMAP rate, Income Tax and National Insurance are due on the difference. The AMAP rate exists to reduce the administrative burden on employers.
The guidance available on GOV.UK has been correct throughout and the government believes that the number of taxpayers who could be affected is very small.
HMRC is also taking steps to bring this inaccuracy to the attention of employers and employees where necessary. Should any cases arise HMRC will work on an individual basis aiming to ensure that any taxpayers who relied on incorrect information are not disadvantaged.
This statement has also been made in the House of Lords