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 for 2002-03 to 2010-11
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 for 2011-12 onwards
Employee C uses their own car for business travel. In the tax year 2011-12 C does 5,000 business miles in it and is paid 49p per mile.
Step 1: find the amount of mileage allowance payments (MAPs) received:
| MAPs received |
5,000 x 49p = |
£2,450 |
Step 2: deduct the approved (exempt) amount (seeEIM31230):
| Approved amount |
5,000 x 45p = |
£2,250 |
Step 3: is the answer positive or negative?
The answer is positive:
| Excess over AMAPs |
Taxable, report on P11D |
£ 200 |
| AMAPs |
Exempt |
£2,250 |
EXAMPLE 3 for 2002-03 to 2010-11
Employee D uses their own car for business travel. In the tax year 2003/04 D 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 |
EXAMPLE 4 for 2011-12 onwards
Employee E uses their own car for business travel. In the tax year 2011-12 E 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 x35p |
£4,200 |
Step 2: deduct the approved (exempt) amount (see EIM31230)
| Approved amount |
10,000 x 45p = |
£4,500 |
|
| |
2,000 x 25p = |
£ 500 |
£5,000 |
Step 3: is the answer positive or negative?
The answer is negative
| Mileage Allowance Relief available (EIM31330) |
relief |
£ 800 |
| AMAPs |
exempt |
£4,200 |
