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HMRC internal manual

Employment Income Manual

From
HM Revenue & Customs
Updated
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Employees using own cars or vans for work: the approved amount for passenger payments

Section 234 ITEPA 2003

Details of the exemption for passenger payments are at EIM31400.

The approved amount for passenger payments

The approved amount (the exempt amount) is:

M x R
     

where:

M is the number of miles of business travel by the employee by car or van:

  • for which in the tax year the employee carries one or more passengers who are also employees for whom the travel is business travel and
  • in respect of which passenger payments are made

R is a rate of 5p per mile.

If more than one passenger is carried, the approved amount is the total of the amountscalculated in respect of each such passenger. The same mile travelled may therefore becounted more than once if more than one passenger is carried simultaneously.

Example

There is an example at EIM31415.