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HMRC internal manual

# Employees using own vehicles for work: examples: mileage allowance payments at pence per mile rate

## Section 230 ITEPA 2003

This page illustrates the calculation of chargeable mileage allowance payments and mileage allowance relief (EIM31235) where payments are made on a pence per mile basis for business travel (EIM31260) in an employee’s own vehicle.

### EXAMPLE 1 for 2002-03 to 2010-11

Employee B uses their own car for business travel. In the tax year 2003/04 B does 5,000 business miles in it and is paid 44p per mile.

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

 MAPs received 5,000 x 44p = £2,200

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

 approved amount 5,000 x 40p = £2,000

### Step 3: is the answer positive or negative?

 Excess over AMAPs taxable, report on P11D £ 200 AMAPs exempt £2,000

### EXAMPLE 2 for 2011-12 onwards

Employee C uses their own car for business travel. In the tax year 2011-12 C does 5,000 business miles in it and is paid 49p per mile.

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

 MAPs received 5,000 x 49p = £2,450

### Step 2: deduct the approved (exempt) amount (seeEIM31230):

 Approved amount 5,000 x 45p = £2,250

### Step 3: is the answer positive or negative?

 Excess over AMAPs Taxable, report on P11D £ 200 AMAPs Exempt £2,250

### EXAMPLE 3 for 2002-03 to 2010-11

Employee D uses their own car for business travel. In the tax year 2003/04 D does 12,000 business miles in it and is paid 35p per mile.

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

 MAPs received 12,000 x 35p = £4,200

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

 approved amount 10,000 x 40p = £4,000 2,000 x 25p = £ 500 £4,500

### Step 3: is the answer positive or negative?

 Mileage Allowance Relief available (EIM31330) relief £300 AMAPs exempt £4,200

### EXAMPLE 4 for 2011-12 onwards

Employee E uses their own car for business travel. In the tax year 2011-12 E does 12,000 business miles in it and is paid 35p per mile.