SCHEDULES

SCHEDULE 12AA MILEAGE ALLOWANCES: INTERPRETATION

5The approved amount: passenger payments

1

The approved amount for passenger payments is—

M×Rmath

where—

M is the number of miles of business travel by the employee, by car or van, for which the employee carries a qualifying passenger in the tax year in question and in respect of which passenger payments are made; and

R is 5p per mile.

2

If the employee carries more than one qualifying passenger for all or part of a tax year, the approved amount for passenger payments is the total of the amounts calculated under sub-paragraph (1) in respect of each qualifying passenger.

3

In this paragraph “qualifying passenger” means a passenger who is also an employee for whom the travel is business travel.

4

The Treasury may by regulations amend sub-paragraph (1) so as to alter the rate.