From 6 April 2002, mileage allowance payments that employers
make to employees who use their own vehicle or bicycle for business
travel are not chargeable to tax if they do not exceed the
appropriate approved mileage allowance payment (AMAP) limit.
Payments that exceed the AMAP limit will be taxed to the extent
that they exceed the limit. Additional tax free payments can be
made to employees who carry business passengers.
Full guidance on the AMAP scheme is at EIM31200 onwards.
Subject to the special rules that apply to mileage allowance
payments for 2002/03 onwards (see above) payments made by employers
to employees in respect of travelling and related subsistence
expenses may be taxable as earnings under Section 62 ITEPA 2003
EIM00520 onwards) or, more usually, be
treated as earnings by Section 72 (see
In general, if a payment for travelling expenses does no more than reimburse the cost of expenses for which a deduction would be due under Section 337, that payment is not earnings within Section 62. But, unless the employee is in lower paid employment, the payment is treated as earnings by Section 72. Where a payment for travelling expenses is earnings, or is treated as earnings the employee or director may then be entitled to a deduction under Section 337 or 338.
Full details of the rules on employee travel expenses are in EIM31800 onwards.
The following table shows you where to find guidance about particular kinds of travelling and related expenses payments.
|EIM10010||Travel between places of work|
|EIM10020||Travel from home to normal place of work|
|EIM10030||Travel from home where home is a place of work|
|EIM10040||Emergency call-out: travel between home and normal place of employment|
|EIM10050||Emergency call-out: travel between home and a place other than a normal place of employment|
|EIM10060||Travel from home to places other than the normal place of work: detached duty|
|EIM10070||Employees with no normal place of work: peripatetic employees|
|EIM10080||Disabled persons: home to work travel|
|EIM10090||Travelling expenses payments under assisted travel schemes|
|EIM10100||Travel and subsistence: public transport on strike|
|EIM10200 onwards||Late night journeys home from work|
|EIM03140||Reimbursement of extra travelling expenses incurred when an employee has had to move house on taking up a new job or a job with a new employer|
|EIM10300||Further guidance on travelling expenses in particular occupations|