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Car Allowance and Mileage rates

Mileage rate for car allowance

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We have as standard supplied company cars. Some employees are now moving onto a car allowance of £350 a month

Which mileage rate do people use in these circumstances. 

Company car drivers get the fuel only HMRC rates, the car allowance staff are pushing for 0.45p per mile. But we feel this is very high as we are already paying a car allowance

Any advice appriciated 

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By clive boorman
06th Aug 2018 08:38

I have a travel allowance and get a reduced rate because of it. I have a diesel car and get 14 pence a mile, petrol users get 16 pence.
However, my company have always advised that I can claim the difference between what the company pay me and what the full HMRC allowance is via a tax return each year which I what I do.

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By Democratus
21st Sep 2018 15:29

I presume that the employees buy their own car with the allowance. So the 45p/m seems reasonable especially if you already pay that to other employees who use their own car.

You pay the allowance to avoid buying and
running a car which the company would own.

You can't have your cake and eat it.

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