Some employers take the view that employees in receipt of a car allowance (which is, in theory, to fund a vehicle) should receive less than the HMRC mileage rate as that is set to cover all the running costs of a car, or at least was when it was first published. Which includes costs theoretically covered by the car allowance. The 45p per mile hasn’t changed in my career I don’t think though.. But HMRC also publish fuel only rates (for those who have an non-expensed company car) and so some employers use those rates to reimburse those who also have a car allowance. Though as long as you don’t have a company car you can claim tax relief on the difference between 45p and the relevant fuel rate (for the first 10,000 business miles)
Last edited by: VxFan on Wed 31 Mar 21 at 02:51
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