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HMRC internal manual

Employment Income Manual

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Employees using own vehicles for work: examples: more than one vehicle of the same kind used during the tax year

Section 230 ITEPA 2003

This page illustrates how the calculation of chargeable mileage allowance payments and mileage allowance relief (EIM31235) for business travel (EIM31260) in the employee’s own vehicle is modified when more than one vehicle of the same kind is used during the tax year.

EXAMPLE 1: for 2002-03 to 2010-11

Employee K owns a car and a van, using both for business travel; these are both of the same kind (EIM31240). K drives 6,000 business miles in the car and 5,000 business miles in the van in the tax year 2003/04 and is paid 40p a mile for all business miles travelled, whichever vehicle is used.

The car and van are of the same kind, so the calculation at EIM31235 puts them together:

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

MAPs received 11,000 x 40p £4,400
     

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

approved amount 10,000 x 40p = £4,000  
       
  1,000 x 25p = £ 250 £4,250

Step 3: is the answer positive or negative?

The answer is positive:

Excess over AMAPs Taxable, report on P11D £ 150
     
AMAPs Exempt £4,250

For an example dealing with more than one vehicle of different kinds, see EIM31375.

EXAMPLE 2: for 2011-12 onwards

Employee L owns a car and a van, using both for business travel; these are both of the same kind (EIM31240). L drives 6,000 business miles in the car and 5,000 business miles in the van in the tax year 2011-12 and is paid 45p a mile for all business miles travelled, whichever vehicle is used.

The car and van are of the same kind, so the calculation at EIM 31235 puts them together:

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

MAPs received 11,000 x 45p £4,950
     

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

approved amount 10,000 x 45p = £4,500  
       
  1,000 x 25p = £ 250 £4,750

Step 3: is the answer positive or negative?

The answer is positive:

Excess over AMAPs Taxable, report on P11D £ 200
     
AMAPs Exempt £4,750

For an example dealing with more than one vehicle of different kinds, see EIM31375.