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  • FIRST POST
    • AlexSS
    • By AlexSS 20th Apr 17, 1:44 PM
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    AlexSS
    Travel Allowance - Tax Implications
    • #1
    • 20th Apr 17, 1:44 PM
    Travel Allowance - Tax Implications 20th Apr 17 at 1:44 PM
    Hi,

    I am wondering if someone can help me. I have my own car and my company has recently moved depots. I have been given a travel allowance for claiming back diesel for travel between work and home. Its been agreed i would claim based on mileage. I am aware this is a benefit in kind so i will get taxed on it. Question is ...........Do i claim @ 45p a mile or 11p a mile?
Page 1
    • Dazed and confused
    • By Dazed and confused 20th Apr 17, 1:50 PM
    • 1,114 Posts
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    Dazed and confused
    • #2
    • 20th Apr 17, 1:50 PM
    • #2
    • 20th Apr 17, 1:50 PM
    I would have though your company would have a policy for this and will specify the rate you can claim from them
    • eggha
    • By eggha 20th Apr 17, 7:20 PM
    • 216 Posts
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    eggha
    • #3
    • 20th Apr 17, 7:20 PM
    • #3
    • 20th Apr 17, 7:20 PM
    claim from whom? The HMRC rates are for tax free business travel, but your place of employment has changed and the new (longer?) journey from your home to that place is of course, ordinary commuting and so is a taxable benefit in kind. Therefore, neither the 45 nor 11 ppm rates are relevant since you will be taxed the total amount you claim (ie the allowance you have been given). If I have misread your post and the "allowance" is nto an actual figure then you need to agree one with your employer.

    Divide the total claimed (the "allowance") by the number of miles you do and that is your "rate"
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