EIM31405 - Employees using own cars or vans for work: the approved amount for passenger payments

Section 234 ITEPA 2003

Details of the exemption for passenger payments are at EIM31400.

»Ê¹ÚÌåÓýapp approved amount for passenger payments

»Ê¹ÚÌåÓýapp approved amount (the exempt amount) is ‘M × Râ€� where:

M is the number of miles of business travel by the employee by car or van:

  • for which in the tax year the employee carries one or more passengers who are also employees for whom the travel is business travel
  • in respect of which passenger payments are made

R is a rate of 5p per mile.

If more than one passenger is carried, the approved amount is the total of the amounts calculated in respect of each such passenger. »Ê¹ÚÌåÓýapp same mile travelled may therefore be counted more than once if more than one passenger is carried simultaneously.

Example

»Ê¹ÚÌåÓýappre is an example at EIM31415.