Pence per mile or car allowance

jimjames

It doesn't give the mileage rate for business mileage so you really need that to compare options. 8p a mile or 14p a mile for 15k miles is a big difference!

Either way you will be paying for fuel out of your pocket and claiming back probably monthly so you need to be prepared for that cash flow. Do they specify the age of vehicle for either option? My company don't so my company mileage is done in a 20 year old car.

cjp2308

Thanks jimjames.

My current car is 11 yr old, they have said 45p a mile for first 10k and 25p a mile thereafter

other option is I take car allowance which will enable me to finance a new vehicle, I was under the impression they then reimburse the total cost of business miles when I submit receipts via BACS, is that not the case? 

Dazed_and_C0nfused

cjp2308 said:

Thanks jimjames.

My current car is 11 yr old, they have said 45p a mile for first 10k and 25p a mile thereafter

other option is I take car allowance which will enable me to finance a new vehicle, I was under the impression they then reimburse the total cost of business miles when I submit receipts via BACS, is that not the case? 

Each employee is likely to have their own rules, it isn't something where every employer will do the same thing.

But if they are paying you say £400/month car allowance (which is basically extra pay but usually without the benefit of it counting for pension purposes) then you are likely to find they will only pay you a low mileage rate, as others have said.

They can pay you whatever mileage they want but I doubt it will be 45p (maximum they can pay without it being taxable) or more.