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HMRC internal manual

Employment Income Manual

HM Revenue & Customs
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Employees using own vehicles for work: more than one employment: associated employments

Section 230(4) ITEPA 2003

Where an employee uses their own vehicle in the course of more than one employment during a single tax year, each employment is treated separately (so each has its own10,000 mile higher rate limit for cars and vans, see EIM31240).

This rule is modified if the employments are associated. The business mileage from all associated employments is added together when working out whether the 10,000 mile limit has been reached (see example at EIM31380).

This applies both for working out the amount of any mileage allowance payments that are exempt from tax as approved mileage allowance payments and for working out the amount of any mileage allowance relief that is due (see EIM31235).

Associated employments

In broad terms, two employments are associated if the earnings are added together in working out if, for 2015/16 and earlier an employee earns at least £8,500 a year, see EIM20106.

In more detail, one employment is associated with another if:

  • the employer is the same
  • the employers are partnerships or bodies and an individual or another partnership or body has control over both of them, or
  • the employers are associated companies within the meaning of Section 416 ICTA 1988.

To see if the first or second of these apply, use the guidance at EIM20106. If there is a situation that does not come within thefirst or second and that you consider might come within the third, seek advice from anInspector who deals with technical issues on corporation tax.