SE31880 - Travel expenses: general - employees using own car for work - how to calculate relief using the Inland Revenue's authorised mileage rates - two or more cars at the same time

Important note:

From 2002/03 the rules described below have changed. There is a new statutory mileage allowance relief rate that is used to calculate tax relief that employees can get for using their own vehicles for work. Employees are no longer entitled to deduct actual costs (the exact method) or to use the non-statutory authorised mileage rates (the simple method). There is detailed guidance on the new scheme at SE31330 onwards.

2001/02 and earlier

Where an employee holds two or more cars simultaneously, and both or all of them are used for business travel, the higher 'first 4,000 business miles' mileage rate applies separately to each of them. This reflects the higher standing costs incurred by someone with two cars, a percentage of which would feed through into a statutory Section 198 and capital allowances computation. See example SE31909.