Section 230 ITEPA 2003

This page illustrates the calculation of chargeable mileage allowance payments and mileage allowance relief (EIM31235) where an employee receives a fixed monthly lump sum and a (normally) lower rate per mile for business travel (EIM31260) in their own vehicle.

All payments must be mileage allowance payments (MAPs, see EIM31210), which means that the lump sum element must be calculated so as to cover only the business proportion of the standing costs of the car. It must not be a payment made merely because the employee no longer has a company car; that is not a MAP.

Need help? Get subscribed!

To subscribe to this content, simply call 0800 231 5199

We can create a package that’s catered to your individual needs.

Or book a demo to see this product in action.