Business Mileage

Business Mileage

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Hi,

When an employee changes employers during the year, does this affect the rate at which they can claim back business mileage at all.

For example, employee works at company A and does 9,000 business miles in his own car and makes a claim at 40p per mile.

If the employee then moves to company B am I right to assume that the next 1,000 is at 40p and then 25p thereafter, as opposed to going back to zero and another 10,000 miles at 40p?

Thanks

Matt

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By occca
29th Jun 2010 11:09

You are correct

1,000 at 40p then the rest at 25p

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By S Greig
29th Jun 2010 11:25

AMAP ~ Sorry to disagree

Sorry to disagree, but HMRC manuals make this clear that, providing the employments are not associated, each will carry their own first 10000 miles :~

See ~ EIM 31310. Employees using their own vehicles for work: Approved mileage allowance payments (AMAPs): Change of employer: Not associated: Example

Section 230 ITEPA 2003

This example illustrates the guidance at EIM31255 about the employee who uses a car or van in more than one employment.

See EIM31225 for what counts as business travel.

The employee changes from employment with employer A to employment with employer B at the end of September 2003. He uses his own van for business travel in both employments. He drives 8,000 business miles for employer A and 4,000 business miles for employer B.

The two employments are not associated (see EIM31220). So even though the employee has driven more than 10,000 business miles in total in 2003/04, he does not reach the 10,000 limit in either employment. Therefore the 40p a mile rate (see EIM31240) will be used for working out the approved amount for mileage allowance payments (the AMAPs amount, see EIM31215) for each employment.

See example EIM31315 where the employments are associated.

 

I hope this helps

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