Employees using own vehicles for work: use of the approved amount: chargeable amount and relief available
Sections 230 and 231 ITEPA 2003
Chargeable amounts and relief available
The following 3 step calculation is carried out for each kind of vehicle (EIM31240):
Step 1: calculate the mileage allowance payments received
Calculate the amount of mileage allowance payments (MAPs, EIM31210)received for that kind of vehicle for that tax year.
Step 2: deduct the approved (exempt) amount
Deduct the approved amount for mileage allowance payments (the approved amount, EIM31230) applicable to that kind of vehicle for that tax year.
Step 3: is the answer positive or negative?
If the answer is positive:
- this is the chargeable amount to be reported on form P11D
- the amount in Step 2 is exempt.
If the answer is negative:
- this is the amount of Mileage Allowance Relief (see EIM31330) to which the employee is entitled
- all MAPs are exempt.
The answer may be modified in the following circumstances:
- if the employee uses more than one vehicle in the same employment, see EIM31275
- if the employee has more than one employment in the year, see EIM31280.
These start at EIM31350.