EIM31375 - Employees using own vehicles for work: examples: vehicles of different kinds used during the tax year

Section 230 ITEPA 2003

This page illustrates how the calculation of chargeable mileage allowance payments and mileage allowance relief ( EIM31235) for business travel ( EIM31260) in the employee’s own vehicle is modified when vehicles of different kinds is used during the tax year.

EXAMPLE

Employee G uses their own car for business travel. They also use their own cycle for short business journeys to locations close to the office. These are different kinds of vehicle ( EIM31240). G covers 9,500 miles of business travel in the car and 700 business miles on the cycle in the tax year 2003/04, receiving 38p a business mile for car journeys and 22p a mile for cycle journeys.

The calculation at EIM31235 must be carried out separately for each kind of vehicle ( EIM31255).

Car:

Step 1: find the amount of mileage allowance payments (MAPs) received:

Step 2: deduct the approved (exempt) amount (see EIM31230):

Step 3: is the answer positive or negative?

The answer is negative:

Cycle:

Step 1: find the amount of mileage allowance payments (MAPs) received:

Step 2: deduct the approved (exempt) amount (see EIM31230):

Step 3: is the answer positive or negative?

The answer is positive:

Overall result

Here, the result is a taxable excess on one kind of vehicle and MAR available on the other.  Because they are the results of separate calculations, they should be reported separately, not  amalgamated.