Part 4Employment income: exemptions
Chapter 2Exemptions: mileage allowances and passenger payments
Mileage allowances
230The approved amount for mileage allowance payments
1
The approved amount for mileage allowance payments that is applicable to a kind of vehicle is—
where—
M is the number of miles of business travel by the employee (other than as a passenger) using that kind of vehicle in the tax year in question;
R is the rate applicable to that kind of vehicle.
2
The rates applicable are as follows—
Kind of vehicle | Rate per mile |
|---|---|
Car or van | 40p for the first 10,000 miles |
25p after that | |
Motor cycle | 24p |
Cycle | 20p |
3
The reference in subsection (2) to “the first 10,000 miles” is to the total number of miles of business travel in relation to the employment, or any associated employment, by car or van in the tax year in question.
4
One employment is associated with another if—
a
the employer is the same;
b
the employers are partnerships or bodies and an individual or another partnership or body has control over both of them; or
c
the employers are associated companies within the meaning of section 416 of ICTA.
5
In subsection (4)(b)—
a
“control”, in relation to a body corporate or partnership, has the meaning given by section 840 of ICTA (in accordance with section 719 of this Act), and
b
the definition of “control” in that section of that Act applies (with the necessary modifications) in relation to an unincorporated association as it applies in relation to a body corporate.
6
The Treasury may by regulations amend subsection (2) so as to alter the rates or rate bands.