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HMRC internal manual

Employment Income Manual

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.