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HMRC internal manual

Employment Income Manual

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 where no mileage allowance payments are made for business travel in an employee’s own vehicle.

Example 1 for tax years 2002 to 2003 to 2010 to 2011

Employee A uses their own car for occasional business travel and covers 860 miles in the tax year 2003 to 2004; they receive nothing in recognition of this.

The calculation is:

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

MAPs received
Nil

Step 2: deduct the approved (exempt) amount

Approved amount
860 × 40p = £344

Step 3: is the answer positive or negative?

The answer is negative.

Mileage Allowance Relief available AMAPs exempt
£344 Nil

Example 2 for tax years 2011 to 2012 onwards

Employee A uses their own car for occasional business travel and covers 860 miles in the tax year 2011 to 2012; they receive nothing in recognition of this.

The calculation is:

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

MAPs received
Nil

Step 2: deduct the approved (exempt) amount

Approved amount
860 × 45p = £387

Step 3: is the answer positive or negative

The answer is negative.

Mileage Allowance Relief available AMAPs exempt
£387 Nil