SE31315 - Employees using their own vehicles for work: rules from 2002/03 onwards – calculation of approved mileage allowance payment - business travel in associated employments - 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 is a director of two companies in the same group of companies, company Y and company Z. She uses her own car for business travel when carrying out duties for each employment. She drives 8,000 business miles for company Y and 4,000 business miles for company Z.

As her two employers are members of the same group of companies, these two employments are associated (see SE31220). This means that the business mileage for both employments is added together when working out whether the 10,000 higher mileage rate limit for cars and vans has been reached (see SE31240). So in this case, the AMAPs amount, the maximum amount that can be exempt from tax, is calculated as follows:

See example SE31310 where the employments are not associated.