EIM31350 - Employees using own vehicles for work: example: 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 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 miles × 45 pence = £387
Step 3: is the answer positive or negative
The answer is negative:
- mileage allowance payments received: nil
- mileage allowance relief available (EIM31330): £387