Car allowance and Mileage

kackah

Hi

I was hoping someone cold help me make sense of a couple of queries that I have.

First of all I have just been offered a job with a car allowance. I dont really understand how this will be taxed? Is it added to my basic salary and taxed as a total figure or is it taxed in a different way? I've always opted for the company car and this is all new to me.

Secondly, I've been told that the company only pays 15p per mile and that you have to claim the rest back from the government? Again, I've always worked for places that just pay you a mileage rate.

I wondered if anyone could help.

Thanks

K

enlander

Car allowance will be paid as a different payroll element monthly and you will either receive a gross amount and be taxed at the rate you pay or just receive a net amount. Normally it will be the first option so in essence is a top up to your salary.

Depending on the miles you do each year, you can claim up to 40p per mile, so 25p per mile the difference to what your company pays. I think you need to keep a note of all journeys and then claim on your tax form.

bob_a_builder

Secondly, I've been told that the company only pays 15p per mile and that you have to claim the rest back from the government

can't claim the rest back

but you can claim the tax on the difference between what company pays and hmrc figure of 40p

kackah

Hey,

I wondered if is a way I can work out what my monthly salary will be?

I usually use listentotaxman.com but it gives me two different results based on whether i include it as an allowance or just add it onto my salary.

Thanks

K