Car Allowance and Fuel

eddieps

Good morning all

Hope I am in the right place, I have just been made redundant but fingers crossed a new job is not far off, the problem I have is understanding the Car Allowance implications, until recently and for approx 10 years now I have been paid a car allowance plus business mileage rates....with the last comapy I was paid £375 per month plus Business miles at 17p and at end of year I claimed back the difference against the tax.

The new company have yet to decide how to go ahead but have talked about just paying the mileage at 45p for the 10,000 and 25p for the rest.

I am roughly 60 miles from the office and have told them I would need to be classed as home based as I travel to clients all over the country, I would expect to be driving approx 20 to 25,000 miles with work and not much on the private side.

I just wonder as I have always had a car allowance if I am missing something

Any advise gratefully accepted

Paul

thenudeone

Have you taken into account that the car allowance was always taxed in full as income? [although I accept that you may have received as much (or more) back as an allowance on your tax return]

eddieps

Yes I realise the allowance was taxed as income in my monthly wage, I used to fill in a self assesment annually to claim back the mileage difference which used to come to around £1,100 which was paid back in a cheque....its never havin been paid just the mileage at full rate 45p and 25p I am wondering whether not getting the actual allowance is such a big deal?