AMAPs is an abbreviation for Approved Mileage Allowance Payments.
These payments are set out by HMRC, and mean that you are Reimbursed 45 pence per mile for first 10,000 business miles that you complete in a tax year, and 25p for each mile over the 10,000 limit after that.
As an example, if your total tax year miles are under 10,000, you would be eligible for your business miles in the period to be reimbursed at 0.45 pence per mile.
Lets say you have completed 200 miles this month. Your calculation would appear to look like this:
200 miles x 0.45p = £90.00 reimbursement due.
If you have completed 9980 miles in the tax year and then this month you go over that threshold, the first 20 miles would be reimbursed at 0.45 pence per mile, and the remaining would be at 0.25 pence per mile.
Let'sLets say that you have completed 150 miles this month. As your tax year total is already at 9980 miles, only 20 of these miles would be reimbursed at 0.45p. The other 130 miles would then be at the lower rate of 0.25 p. Your calculation would look like this:
20 miles x 0.45 = £9.00
130 miles x 0.25 = £32.50
This therefore gives a total of £41.50 reimbursement due for this scenario.
The AMAP Rates are used to reduce the employees taxable pay. As long as the AMAP limit is not exceeded, it will not be subject to being taxable.
AMAP Rates are used for employees who use their own vehicle for work, and do not receive any car/cash allowances. We would refer to this as being a 'Grey Fleet' Employee.
You can find out more information on these rates on the Government website - HMRC's Travel - mileage and fuel rates and allowances page.
Your company may pay an alternative rate to AMAPs, under the same principles, where you're reimbursed a set rate of (x) pence per mile, for the first (x) miles, then (x) pence per mile thereafter. If this is the case, you may be eligible to make a P87 claim at the end of the tax year to claim the Tax relief on the difference that you have receieved vs the amount that you were eligible for.