Car allowance & Mileage rates

PJM_01

Hello,

This is my first post on the forum (I've browsed it for some time though and gleaned some useful tips!)

My company is about to introduce a car allowance of £250 a month to be paid in with the salary (which will put my gross income just below the 40% tax threshold.)
We use our own vehicles and and currently claim 45p per mile for the first 10k miles inline with HMRC rates.

If we start getting an allowance will this effect the amount we can claim per mile?

I admit I'm not as clued up about all this as I should be so any guidance will be appreciated.

InsideInsurance

I've been told previously that it doesnt, no company car and so you get the personal car rates.

That said, a prior employer only paid company car rates if you qualified for an allowance but I believe the shortfall could be dealt with direct to HMRC

alleycat`

Depends how they do it but there is a chance they'll pay up to a certain amount and you have to claim the rest off HMRC.