Income Tax (Earnings and Pensions) Act 2003 section 231

Mileage allowance relief

Section 231 explains what mileage allowance relief is, how it is calculated, and when an employee may be entitled to claim it.

• An employee who uses their own vehicle for business travel may claim mileage allowance relief if the mileage payments they receive from their employer are less than the approved amount for that type of vehicle
• The relief is calculated as the difference between the approved amount for the type of vehicle and the total mileage allowance payments actually received from the employer
• Relief is not available if the employee was merely a passenger in the vehicle rather than the driver
• Relief is not available if the vehicle used is a company vehicle