EIM31370 - Employees using own vehicles for work: 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: for 2011 to 2012 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 to 2012 and is paid 45 pence 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 miles × 45 pence = £4,950

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

• first 10,000 miles at 45 pence: 10,000 × 45 pence = £4,500
• additional miles at 25 pence: 1,000 × 25 pence = £250
• total exempt amount = £4,750

Step 3: is the answer positive or negative?

The answer is positive:

• excess over AMAPs is taxable and reported on P11D, in this example the amount in excess over AMAPs is £200
• AMAPs exempt amount is £4,750

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