SE31265 - Employees using their own vehicles for work: rules from 2002/03 onwards – approved mileage allowance payments – amount paid exceeds statutory exempt amount

Section 197AD(1) ICTA 1988 as introduced by Section 57 FA 2001

Where the employee is paid amounts that count as mileage allowance payments (MAPs – see SE31260 and SE31210) but which exceed the maximum approved mileage allowance payment (the AMAPs amount - see SE31255), the excess over the AMAPs amount is chargeable to tax in the normal way.

But it is only the excess over the AMAPs amount that is taxable. The exemption for MAPs up to the tax free AMAPs amount still applies, even where the total MAPs exceed the tax free limit. See example SE31290.