|Vehicle type||First 10,000 miles in the tax year||Above 10,000 miles|
|Cars or vans||45p||25p|
|Car or van passenger||5p||5p|
The AMAPs arrangements can be used to calculate the maximum amount that can be paid free of income tax to the drivers of their own vehicles. If an employee receives less, the difference can be claimed as mileage allowance relief (MAR).
There is an additional exemption from tax for employees using cars or vans to carry fellow employees on business travel. The passenger payment rate is 5p per mile per passenger. There is no relief if you receive less.
For NIC purposes only, the amount that can be paid without the need to apply NI is 45 per mile regardless of the business mileage undertaken. Hence the 10,000 mile threshold does not apply.