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Car allowance paid by employer

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Comments

  • Car_54
    Car_54 Posts: 9,094 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    facade wrote: »
    But if the car is used exclusively for work purposes, then there ought to be a better way to finance it, as he really shouldn't have to pay tax on a "benefit in kind", as he hasn't got one.


    To be "used exclusively for work purposes" he would need to keep the car at the office and commute by other means. I suspect he doesn't do that.


    Benefit in kind isn't relevant: he's getting cash, not a car.
  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    facade wrote: »
    But if the car is used exclusively for work purposes, then there ought to be a better way to finance it, as he really shouldn't have to pay tax on a "benefit in kind", as he hasn't got one.

    There will be a better way to get to work - not lease a new car but buy an older/cheaper one but that wouldnt be an option until the lease ends.
  • arcon5
    arcon5 Posts: 14,099 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    BoGoF wrote: »
    What do you mean one or the other?


    As in either claim the expenses incurred or claim mileage relief but not both at once
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