UUÂãÁÄÖ±²¥

Introduction

Most employers will make payments to employees in relation to business travel. Among the most common payments in relation to business travel are fuel and mileage payments. If an employer does not reimburse these amounts, then the employee will be able to claim a deduction for qualifying amounts on a P87 or through their tax return (see the Expenses guidance note).

Business travel includes journeys an employee needs to make in order to carry out the duties of employment or journeys in relation to necessary attendance; it specifically excludes commuting. For further consideration of what constitutes business travel, please refer to the Travel expenses and Subsistence expenses guidance notes.

Payments to employees in respect of fuel are generally made in one of two ways:

1. •

   mileage-related payments

2. •

   lump sum payments

Mileage-related payments are typically calculated by reference to mileage and are known as either:

1. •

   Approved Mileage Allowance Payments (MAPs or AMAPs) ― paid only in respect of private vehicles. These include rates for mileage in a car or other vehicles,