EIM31350 - Employees using own vehicles for work: examples: no mileage allowance payments
Section 230 ITEPA 2003
This page illustrates the calculation of chargeable mileage allowance payments and mileage allowance relief ( EIM31235) where no mileage allowance payments are made for business travel ( EIM31260) in an employee’s own vehicle.
EXAMPLE
Employee A uses their own car for occasional business travel and
covers 850 miles in 2003/04; they receive nothing in recognition of
this.
The calculation at EIM31235 is:
Step 1: find the amount of mileage allowance payments (MAPs) received:
| MAPs received | £nil |
Step 2: deduct the approved (exempt) amount (see EIM31230):
| approved amount | 850 x 40p = | £340 | £340 |
Step 3: is the answer positive or negative?
The answer is negative:
| Mileage Allowance Relief available ( EIM31330) | relief | £340 |
| AMAPs | exempt | £nil |
