Personal Tax Unit 19 Kaplan Book

NickyW Registered Posts: 97 πŸ’« 🐯 πŸ’«
hi there - am studying personal tax and really can't get my head round Approved Mileage Allowance payments.
I get that you can get paid 40p a mile for the 1st 10000 miles and 25p thereafter.

I looked on the HMRC website and it says the following.....

You are allowed to pay employees up to the approved amount of MAPs each year without having to report them to HM Revenue & Customs (HMRC) or pay any tax on them. These tax-exempt payments are known as 'approved mileage allowance payments' (AMAPs).

In the Kaplan Book Chapter 4 Activity 3 LA Raider.
It says his business mileage in his own car is 12000 miles.
In the answer it says that Raider can claim for the 12000 business miles travelled in his own car.
Expense claim 10000 x 40p = 4000
2000 x 25p = 500
This is then deducted from assessable benefits.

I don't understand this - why is it a deductible benefit - when it says if employees are paid up to the approved amount they don't have to report them.

Sorry for being so long winded - any help would be greatly appreciated as I have a real block where this is concerned!


  • timgriff
    timgriff Registered Posts: 55 πŸ’« 🐯 πŸ’«
    Hi Nicky,

    Looking at the activity, is it because LA Raider has not actually been paid by his employer for the business mileage relating to the Lotus? So instead he is claiming the tax element from HMRC as an allowable expense?

    That's the only logic I can see - it doesn't help that Kaplan are trying to be clever by involving 3 cars! So in summary:

    Pool Car with chauffeur - N/A
    Rover Car - used by Wife (!) - subject to fuel/car benefit - all expenses paid by employer.
    Lotus - No expenses paid by employer so claim from HMRC for business mileage.
  • NickyW
    NickyW Registered Posts: 97 πŸ’« 🐯 πŸ’«
    It could well be - and that's why it has been confusing me so much!
    I think I will e-mail them and ask!
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