EIM31355 - Employees using own vehicles for
work: examples: mileage allowance payments at pence per mile
rate
Section 230 ITEPA 2003
This page illustrates the calculation of chargeable mileage
allowance payments and mileage allowance relief (
EIM31235) where payments are made on a
pence per mile basis for business travel (
EIM31260) in an employee’s own
vehicle.
EXAMPLE 1
Employee B uses their own car for business travel. In the tax
year 2003/04 B does 5,000 business miles in it and is paid 44p per
mile.
Step 1: find the amount of mileage allowance payments (MAPs)
received:
| MAPs received | 5,000 x 44p = | £2,200 |
Step 2: deduct the approved (exempt) amount (see
EIM31230):
| approved amount | 5,000 x 40p = | £2,000 |
Step 3: is the answer positive or negative?
The answer is positive:
| Excess over AMAPs | taxable, report on
P11D | £ 200 |
| AMAPs | exempt | £2,000 |
EXAMPLE 2
Employee C uses their own car for business travel. In the tax
year 2003/04 C does 12,000 business miles in it and is paid 35p per
mile.
Step 1: find the amount of mileage allowance payments (MAPs)
received:
| MAPs received | 12,000 x 35p = | £4,200 |
Step 2: deduct the approved (exempt) amount (see
EIM31230):
| approved amount | 10,000 x 40p = | £4,000 | |
| 2,000 x 25p = | £ 500 | £4,500 |
Step 3: is the answer positive or negative?
The answer is negative:
| Mileage Allowance Relief
available (
EIM31330) | relief | £300 |
| AMAPs | exempt | £4,200 |
