Car allowance & HMRC

bamgbost

My job involves a lot of travelling, and seeing clients. So I spend a lot of time on the road.


The Package I get is:

I use my own car. (with business insurance) and I am responsiblefor maintaining car and ensuring it is road worthy.

Get a taxable Car allowance of £200 / month.

And get fuel expense of 45p a mile.

All in all, it’s not too too bad, but not great either, when compared to what other companiesgive.

I wanted to know if I can claim any additional tax relieffrom the HMRC, or if this is the best I can get.

Or I just need to try and get a bigger allowance orpromotion of the company?

AJ1982

Bigger allowance definitely, depends on how often you travel.

Company Car could be good, but Car allowance/mileage off sets the costs wear and tear.

Dont forget, after 10,000 miles the 45p drops down for subsequent miles. (25p I think) Per year of course.

Aquamania

bamgbost wrote: »

...Get a taxable Car allowance of £200 / month.

And get fuel expense of 45p a mile.

All in all, it’s not too too bad, but not great either, when compared to what other companiesgive.

I wanted to know if I can claim any additional tax relieffrom the HMRC, or if this is the best I can get.

...

You get a car allowance and 45p per mile?

Most employers I am aware of will only pay a maximum of 45p per mile (as they know paying any more creates a tax liability), without any car allowance.

If the car is allowed for in some other way, either provided or in your case as a car allowance, then many employers will only pay a reduced mileage allowance.


Anyway, in answer to your question, as blondebubbles says, if you are already receiving 45p per mile, there is no further tax relief available.

I see you say you do a lot of travelling. Note that 45p per mile tax relief is only available on the first 10,000 business miles per year (at which point it reduces to 25p per mile) If you are doing more than 10,000 business miles per year and still receiving 45p per mile for every business mile, then you will be liable to tax on some of that payment.

Look on the brightside. According to this thread, it appears one employer at least is expecting employees to provide their own car, is not paying any car allowance and will not reimburse the employee a penny for using it in the course of their employment. :eek:
https://forums.moneysavingexpert.com/discussion/5239487

DKLS

Your car allowance sucks, I turned down a job because they only offered a 4k allowance, which meant only driving dull eco boxes, the one I am one now is 6.5k plus fuel card.

£200 a month is an insult.

comeandgo

Yes, the car allowance is low but the mileage rate is excellent so I suppose it depends on how many business miles are done. If it's high then you should benefit, even with tax to pay on over 10,000 miles.

AJ1982

The mileage rate is standard, not excellent.

I get 45p, thats the rate HMRC set.

bamgbost

Thanks guys. Looks like Im stuck with my current deal then.
Gonna try ask for a rise in allowance, but really the best I can see them budging to is £250 a month.
Been here a year, and my average mileage a month must be about 800-850! Did nearly 600 last week alone tho!!