Section 230 ITEPA 2003

This page illustrates how the calculation of chargeable mileage allowance payments and mileage allowance relief (EIM31235) for business travel (EIM31260) in the employee's own vehicle is modified when vehicles of different kinds is used during the tax year.

EXAMPLE 1: for 2002-03 to 2010-11

Employee M uses their own car for business travel. They also use their own cycle for short business journeys to locations close to the office. These are different kinds of vehicle (EIM31240). M covers 9,500 business miles in the car and 700 business miles on the cycle in the tax year 2003/04, receiving 38p a business mile for car journeys and 22p a mile for cycle journeys.

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