Company car allowance?????

Shinesenv

Hi all

I'm a complete newbie to this forum lark..........so don't shout at me.....

Basically I work for a friendly company and now my roll has changed which needs me to travel to various sites for work. I am currently using my own car for these business miles for which I get paid 40p per mile which covers my fuel plus a bit more. I have asked if I could get paid a basic allowance rather than a millage allowance. The MD is fine withthe concept but is unsure what would be a fair rate. Which is my question on here..... What is a fair rate for company car allowance? What about fuel? Would it be fair to say that the companypays ffor the business miles used as per mpg ?
I cover around 10000 business miles per year and the same again in personal.
Any help or advice would be appreciated.

Thanks in advance

zagfles

Car allowances are usually about £4-6k, with the employer then paying a mileage rate which just reflects petrol/oil costs, eg around 15-20p/mile.

The tax situation can get a bit complicated, the HMRC limits are 45p per mile for the first 10,000 miles and 25p per mile above 10,000, if your employer pays less than this you can claim tax relief on the difference (so you can claim now as you only get 40p).

When companies pay car allowances they usually do it through payroll so it's fully taxed, but you can then claim tax relief on the difference between the HMRC rate and the rate they pay in expenses.