SE65830 - Tax treatment of local authority officials and employees: car allowances paid to employees who use own cars for work - non-standard rates

Important note:

Both the statutory rules and the administrative arrangements for dealing with mileage payments are replaced by the new statutory scheme for approved mileage allowance payments (AMAPs) that applies from 2002/03 onwards. Full guidance on the AMAP scheme is at SE31250 onwards.

Rules up to and including 2001/02

Some local authority officials (for example Chief Officers) receive car allowances at different rates to those paid to other employees. So the arrangements at SE65820 cannot apply to them. But if the local authority in question uses the Fixed Profit Car Scheme for employees paid at the standard rates, it can also use it for employees paid at non-standard rates. If the employer asks for this treatment, you will need to draw up a Fixed Profit Car Scheme Profit table in respect of the non-standard rates. Instructions on how to do this are at EP8000 onwards. If the employer does not ask for this treatment, then it should calculate the profit individually for each employee who receives the non-standard rates – provided that the numbers affected are relatively small.

If the local authority in question uses the Car Allowances Enhanced Reporting System, then that system should also be used to report any motor mileage allowance profits of employees paid at non-standard rates.

The local authority should include the same information in the report of motor mileage allowance figures for these employees as it does for other employees for whom reports are made under the Fixed Profit Car Scheme or Car Allowances Enhanced Reporting System, as appropriate.