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HMRC internal manual

Employment Income Manual

Employees using own vehicles for work: mileage allowance relief (MAR): outline

Section 231 ITEPA 2003


provides an overview of the statutory scheme dealing with employees who carry out business travel in their own cars, vans, motor cycles or cycles. It covers

  • payments to employees, and
  • deductions to which employees are entitled.

This page deals with the second of these. The deduction is called Mileage Allowance Relief (MAR)

Entitlement to mileage allowance relief

An employee is entitled to MAR for a year if that employee:

  • uses their own vehicle (car, van, motor cycle or cycle) for business travel, and
  • receives less mileage allowance payments (EIM31230) than the approved amount (EIM31235) applicable to that kind of vehicle (EIM31240) for the tax year.

Calculation of mileage allowance relief

The same calculation is used to determine both MAR and the chargeable amount of mileage allowance payments, see EIM31235.

The same statutory mileage rates (EIM31240) are used to calculate both MAR and the approved amount. It is therefore impossible for an employee to be chargeable for mileage allowance payments (MAPs) in excess of the approved amount andbe entitled to MAR in the same tax year for the same kind of vehicle.

There is no alternative whereby, for example, employees may claim for actual expenditure incurred (see EIM31335).