How much mileage can you pay tax-free?
For employers paying Mileage Allowance Payments when staff use their own vehicle. See the approved amount, what stays tax-free, and any taxable excess.
Approved Mileage Allowance Payments
MAPs are what you pay an employee for using their own vehicle for business travel. You can pay up to the approved amount without reporting those payments to HMRC. Keep records of journeys and amounts paid.
Official guidance: MAP rules for tax, how to tax mileage payments (480 Ch 16).
Quick answers
Do we report exact approved payments?
No. If you pay exactly the approved amount (or less), you do not report the mileage payments on P11D. Keep evidence of miles and payments.
Are National Insurance rules identical?
NI has a related scheme with slightly different detail. Check the employer further guide (CWG2) for Class 1 treatment of any excess.