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 1 for 2002-03 to 2010-11
Employee A uses their own car for occasional business travel and covers 860 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 | 860 x 40p = | £344 | £344 |
Step 3: is the answer positive or negative?
The answer is negative:
| Mileage Allowance Relief available (EIM31330) | relief | £344 |
| AMAPs | exempt | £nil |
EXAMPLE 2 for 2011-12 onwards
Employee A uses their own car for occasional business travel and covers 860 miles in 2011-12; 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 | 860 x 45p | £387 | £387 |
Step 3: is the answer positive or negative
The answer is negative:
| Mileage Allowance Relief available (EIM31330) | Relief | £387 |
| AMAPs | Exempt | £nil |
