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HMRC internal manual

Employment Income Manual

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HM Revenue & Customs
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Employees using own vehicles for work: examples: no mileage allowance payments

Section 230 ITEPA 2003

This page illustrates the calculation of chargeable mileage allowance payments and mileage allowance relief (EIM31235) where no mileage allowance payments are made for business travel (EIM31260) in an employee’s own vehicle.

EXAMPLE 1 for 2002-03 to 2010-11

Employee A uses their own car for occasional business travel and covers 860 miles in 2003/04; they receive nothing in recognition of this.

The calculation at EIM31235 is:

Step 1: find the amount of mileage allowance payments (MAPs) received:

MAPs received £nil
   

Step 2: deduct the approved (exempt) amount (see EIM31230):

approved amount 860 x 40p = £344
     

Step 3: is the answer positive or negative?

The answer is negative:

Mileage Allowance Relief available (EIM31330) relief £344
     
AMAPs exempt £nil

EXAMPLE 2 for 2011-12 onwards

Employee A uses their own car for occasional business travel and covers 860 miles in 2011-12; they receive nothing in recognition of this.

The calculation at EIM31235 is:

Step 1: find the amount of mileage allowance payments (MAPs) received:

MAPs received £nil
   

Step 2: deduct the approved (exempt) amount (see EIM31230)

Approved amount 860 x 45p £387 £387
       

Step 3: is the answer positive or negative

The answer is negative:

Mileage Allowance Relief available (EIM31330) Relief £387
     
AMAPs Exempt £nil