[EIM34004] Travelling expenses: employees working abroad: use of employees' own vehicles: mileage allowances and mileage allowance relief
Part 4 Chapter 2 ITEPA 2003Employees who work abroad may use their own vehicles for business travel. Approved mileage allowance payments (AMAPs) paid to employees in respect of business travel in their own vehicles are exempt from tax. The
actual cost of such travel is not deductible (Section 359 ITEPA 2003). However, employees may be entitled to a deduction for mileage allowance relief (MAR) for travel that would have qualified for tax relief as business travel (see EIM31800 onwards). This may be the case whether or not they receive AMAPs. See EIM31205 for an overview of the system.