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HMRC internal manual

Employment Income Manual

Tax treatment of doctors: trainee general practitioners: car allowances

A doctor in family practice who employs a trainee general practitioner may receive an allowance for providing an extra car for the trainee. The rate of allowance is increased from time to time.

The allowance is paid to the practice to which the trainee is attached and the whole or a round sum part will usually be passed on to the trainee for use of his or her own car. The charge on the payment and relief for any business travel in the trainee’s own car is dealt with under the approved mileage allowance payments (AMAPs) scheme in the normal way, see EIM31200 onwards.

Regarding coding adjustments to allow for the taxable element of trainees’ car allowances, see EP8480.