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BVRLA slams firms overpaying AMAP rates

Date: 16 December 2009

BVRLA chief executive John Lewis

The lease industry trade association BVRLA has called on companies to get tougher on drivers using their own vehicles for work, with chief executive John Lewis pushing for business car operators to cut the mileage rates offered to the so-called 'grey fleet' drivers.

"Many employers are giving mileage payments of 50, 60 or even 70p per mile, which is far above the maximum tax-free AMAP [Approved Mileage Allowance Payment] rate of 40p per mile," he said. "Our own estimates suggest that a realistic AMAP rate for the average grey fleet car would be more in the range of 20-30p per mile."

Lewis said the AMAP should cover fuel, the cost of maintenance and the loss in the car's value of driving the work miles. He claimed many companies base their payments on running cost figures for new cars produced by organisations such as the AA that include the cost of funding, insurance and road tax.

Lewis, presenting at the Office of Government Commerce grey fleet conference, also encouraged a zero-tolerance policy on grey fleet drivers that were unable to prove their vehicle is properly maintained and insured, or give details of their driving licence status.