SE31310 - Employees using their own vehicles for work: rules from 2002/03 onwards – calculation of approved mileage allowance payment - change of employer – not associated - example

Paragraph 4 Schedule 12AA ICTA 1988 as introduced by Schedule 12 FA 2001

This example illustrates the guidance at SE31255 about the employee who uses a car or van in more than one employment.

See SE31225 for what counts as “business travel.”

The employee changes from employment with employer A to employment with employer B at the end of September 2002. He uses his own van for business travel in both employments. He drives 8,000 business miles for employer A and 4,000 business miles for employer B.

The two employments are not associated (see SE31220). So even though the employee has driven more than 10,000 business miles in total in 2002/03, he does not reach the 10,000 limit in either employment. Therefore the 40p a mile rate (see SE31240) will be used for working out the approved amount for mileage allowance payments (the AMAPs amount, see SE31215) for each employment.

See example SE31315 where the employments are associated.