The exchequer secretary to the Treasury made a statement clarifying tax treatment of payments for business mileage in that – response to previous questions on the subject of Approved Mileage Allowance Payments (AMAP) resulted in some incorrect advice. 

Where employers reimburse in excess of the AMAP rate income tax and NI is payable on the difference.   Confusion arose when it was stated that income tax and NI doesn’t need to be paid for actual expenditure relating to business mileage. It should be noted that this only applies to volunteer drivers.