Mileage Allowance Payments

Mileage Allowance Payments (MAPs) are what you pay your employee for using their own vehicle for business journeys.

You’re allowed to pay your employee a certain amount of MAPs each year without having to report them to HMRC. This is called an ‘approved amount’.

You can also pay the approved amount of MAPs to your employee if they use their own car to do volunteer work related to coronavirus (COVID-19). You must report and pay tax through a PAYE Settlement Agreement as a COVID-19 related benefit.

Work out the value

To calculate the ‘approved amount’, multiply your employee’s business travel miles for the year by the rate per mile for their vehicle.