BUDGET 2008: AMAPs remain unchanged
12 March 2008
Cars running on modern petrol have a lower list price than diesel equivalents
Although not mentioned in the Chancellor's Budget speech, the Treasury has confirmed that AMAPs (the tax-neutral mileage rates paid to employees who use their own cars for business) are to remain unchanged.
Documentation published to support the Budget speech states the Government will be "maintaining tax-free mileage allowances (AMAPs) rates and thresholds at current levels".
The decision follows more than a year of consultation that was first heralded in the Budget 2007.
A decision on AMAPs had been expected in the Pre-Budget Report. It means that both AMAP payments and ECO (Employee Car Ownership) schemes have now been given the all-clear by HMRC and the Treasury.
However, the Government is continuing to look at the more complex area of collecting BIK tax on business cars and expenses through payroll, rather than through tax coding.