EIM31215 - Employees using own vehicles for
work: examples of things which are not mileage allowance
payments
Sections 229(2) and 359 ITEPA 2003
This page supplements
EIM31210, which contains examples of
mileage allowance payments (MAPs).
These items are not MAPs and so cannot be exempt from tax
under the AMAPs legislation:
- anything that is not a
payment, e.g.
benefits provided, say insurance (the full cost
should be reported as a benefit to the employee on form P11D)
- anything that is not paid
to the employee, e.g. a payment of the
employee’s personal liability, say to the
provider of a car loan (this should also be reported on form P11D),
or a payment which would have been made to the employee had it not
been
assigned to someone else (unless out of net
pay)
- a payment
not related to business mileage, e.g. for private
mileage, or to compensate the employee for the fact that they no
longer have a company car (such payments are earnings which should
be subjected to PAYE in the normal way)
- a fixed amount per month that is
not calculated on the basis of business mileage,
including estimates (these are also normal earnings within PAYE).
Part of the payment cannot later be reclassified as being paid for
expenses; the nature of the payment is fixed when it is made.
- payments
not in respect of mileage, which are chargeable
under section 72(1) unless covered by a dispensation. We do not
apply section 359 so as to deny deduction for this kind of expense,
so deductions continue to be dealt with under the general expenses
rules in Part 5 Chapter 2 ITEPA 2003, see
EIM31800 onwards; e.g.
- payments for expenses like road, bridge and tunnel
tolls (these only allow the car to cross a line in the road)
- congestion charges (they may or may not relate to
mileage as they can be incurred while the vehicle is parked)
- parking (which has nothing to do with mileage at
all), or
- motoring offences such as speeding fines or
parking tickets (these cannot be covered by a dispensation).
It is therefore clear that not everything apparently connected
with mileage is a MAP. Any apparent inequity is accounted for by
the availability of Mileage Allowance Relief (MAR) - see
EIM31330 onwards.
(This text has been withheld because of exemptions in the
Freedom of Information Act 2000)(This text has been withheld because of exemptions in the
Freedom of Information Act 2000)
