EIM31350 | Employees using own vehicles for work: example: no mileage allowance payments

Section 230 ITEPA 2003

This page illustrates the calculation of chargeable mileage allowance payments and mileage allowance relief where no mileage allowance payments are made for business travel in an employee’s own vehicle.

Example for tax year 2025 to 2026

Employee A uses their own car for occasional business travel and covers 860 miles in the tax year 2025 to 2026; they receive nothing in recognition of this.

The calculation is:

Step 1: find the amount of mileage allowance payments (MAPs) received

Maps received: nil

Step 2: deduct the approved (exempt) amount

Approved amount: 860 miles × 45 pence = £387

Step 3: is the answer positive or negative

The answer is negative:

• mileage allowance payments received: nil

• mileage allowance relief available (EIM31330): £387