AMAP FAQs

The Approved Mileage Allowance Payment (AMAP) rate is an official tax-free allowance which is used to reimburse employees or volunteers for the use of vehicles they own or lease and use in the course of their duties. It is set by HM Treasury, enforced by HM Revenue and Customs (HMRC) and based on the overall cost of motoring (including fuel, insurance, equipment, repairs and depreciation).

From 2011, the AMAP rate for cars has been 45p per mile for the first 10,000 miles and 25p per mile thereafter. This can be topped up by 5p per mile per passenger.

Many volunteer car schemes use the AMAP rate as a benchmark to ensure their volunteer drivers are not left out of pocket. It can also be used by HMRC to determine whether an individual is judged to be ‘making a profit’ from volunteering. As long you do not exceed the AMAP rate, your volunteers do not have to report their volunteer expenses to HMRC.

The AMAP rate is advisory, not mandatory. Operators can choose to pay a higher (or lower) rate than the AMAP rate. However, if you exceed the AMAP rate while reimbursing your volunteers, they may need to complete a self-assessment tax return, which may have implications for their tax obligations or social security entitlements. This can be checked here.

You may also choose to provide in-kind benefits (e.g. training, volunteer celebrations) to reward and recognise your volunteer drivers beyond financial reimbursement.

CTA has been leading a voluntary sector campaign for an ‘urgent, transparent and fair review’ of the outdated 2011 AMAP rate since 2022. Motoring costs have increased significantly since 2011. Major fuel price shocks due to recent conflicts and crises in Eastern Europe and the Middle East have underlined the pressing need for action. Analysis by the RAC Foundation reveals that, taking inflation into account, the AMAP rate should now be at least 66p.

On 25 March 2026, HM Treasury announced a ‘workers-first review’ of the AMAP rate. A new rate is likely to be announced by the Chancellor, Rachel Reeves MP, in her Autumn Budget. We welcome this announcement, however the review must deliver a fair deal for volunteers and the new AMAP rate must apply fully to them along with paid staff. CTA and our coalition partners will be making representations to HM Treasury on this point.

You can learn more about our campaign here.

The AMAP rate is advisory, not mandatory. Each Community Transport operator can make their own decisions based on their own financial position, volunteers’ needs, and local circumstances.

An uplift to the AMAP rate will give organisations greater flexibility to do what is right for them, their volunteer drivers and their passengers. Some operators will choose to follow a new rate, if and when they can afford to do so, to support the retention and recruitment of volunteer drivers. Others will decide not to, perhaps to manage budgetary pressures or, where costs are passed onto passengers, to keep fares low.

Nonetheless, we recognise that this is a potential area of concern. That’s why CTA is calling for a ‘fully funded uplift’ to the AMAP rate. This would mean that all grants and contracts from central, national and local government or transport authorities, their agencies, and independent funders would reflect the new AMAP rate and ensure voluntary sector organisations are resourced to implement it. Fair funding is essential. We’re calling for the Autumn Budget to deliver this.