The thing about AMAP rates
17 October 2007
Tristan Young is Editor-in-chief of BusinessCar
Hindsight is a wonderful thing. Using this advantage it's easy to say that it was obvious HM Revenue and Customs had bitten off more than it could chew by investigating AMAP rates.
However, over the past couple of weeks a few straightforward facts have emerged.
Firstly, the number of people who use the mileage rates is massive. Some not unbelievable estimates put this number in the millions, and it includes the thousands of civil servants using their own cars on business, or rather public, use.
Secondly, HMRC does not record what cars people are using when they're driving on company business and being reimbursed using AMAPs.
The result is that any changes Government makes to the AMAP system has the potential to massively impact on the working population and the cars they own.
Don't go far enough and nothing will change; go too far and there could be uproar.
Get it just right, however, and the Government could gently promote the motoring population's desire for cleaner, greener cars. And on that basis I'm glad the HMRC is taking its time before making a recommendation.