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HMRC internal manual

Employment Income Manual

Employment income: travelling and subsistence payments: general

Sections 62 and 72 ITEPA 2003

Mileage allowance payments for business travel using employee’s own vehicle or bicycle- 2002/03 onwards

From 6 April 2002, mileage allowance payments that employers make to employees who use their own vehicle or bicycle for business travel are not chargeable to tax if they do not exceed the appropriate approved mileage allowance payment (AMAP) limit. Payments that exceed the AMAP limit will be taxed to the extent that they exceed the limit. Additional tax free payments can be made to employees who carry business passengers.
Full guidance on the AMAP scheme is at EIM31200 onwards.

Mileage allowance payments for business travel using employee’s own vehicle or bicycle- 2001/02 and earlier and other travel and subsistence payments - all years

Subject to the special rules that apply to mileage allowance payments for 2002/03 onwards (see above) payments made by employers to employees in respect of travelling and related subsistence expenses may be taxable as earnings under Section 62 ITEPA 2003 (see generally EIM00520 onwards) or, more usually, be treated as earnings by Section 72 (see EIM20601).

In general, if a payment for travelling expenses does no more than reimburse the cost of expenses for which a deduction would be due under Section 337, that payment is not earnings within Section 62. But, the payment is treated as earnings by Section 72 (unless, for 2015/16 and earlier, the employee is in lower paid employment). Where a payment for travelling expenses is earnings, or is treated as earnings the employee or director may then be entitled to a deduction under Section 337 or 338.

Full details of the rules on employee travel expenses are in EIM31800 onwards.

The following table shows you where to find guidance about particular kinds of travelling and related expenses payments.

### Guidance ### Circumstance
EIM10010 Travel between places of work
EIM10020 Travel from home to normal place of work
EIM10030 Travel from home where home is a place of work
EIM10040 Emergency call-out: travel between home and normal place of employment
EIM10050 Emergency call-out: travel between home and a place other than a normal place of employment
EIM10060 Travel from home to places other than the normal place of work: detached duty
EIM10070 Employees with no normal place of work: peripatetic employees
EIM10080 Disabled persons: home to work travel
EIM10090 Travelling expenses payments under assisted travel schemes
EIM10100 Travel and subsistence: public transport on strike
EIM10200 onwards Late night journeys home from work
EIM03140 Reimbursement of extra travelling expenses incurred when an employee has had to move house on taking up a new job or a job with a new employer
EIM10300 Further guidance on travelling expenses in particular occupations