SE31220 - Employees using their own vehicles for work: rules from 2002/03 onwards - definitions - associated employments

Paragraph 4, Schedule 12AA ICTA 1988 as introduced by Section 57 and Schedule 12 FA 2001

Where an employee uses his or her own vehicle in the course of more than one employment during a single tax year, it is important to identify whether or not the employers involved are associated. If they are associated, then the business mileage from both employments is added together when working out whether the 10,000 higher rate limit for cars and vans has been reached (see rates at SE31240). This applies for both working out the amount of any mileage allowance payments that are exempt from tax as approved mileage allowance payments (see SE31255, example SE31310 and example SE31315), and for working out the amount of any mileage allowance relief that is due (see SE31340 and example SE31385).

In broad terms two employments are associated if the emoluments are added together in working out if an employee earns at least £8,500 a year - see SE20106.

In more detail, one employment is associated with another if -

• the employer is the same;
• the employers are partnerships or bodies and an individual or another partnership or body has control over both of them; or
• the employers are associated companies as defined in section 416 ICTA 1988.

To see if the first or second of these apply, use the guidance at SE20106.

If there is a situation that does not come within the first or second and that you consider might come within the third, seek advice from an Inspector who deals with technical issues on corporation tax.