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Where Taxpayers and Advisers Meet

Car Allowance and Fuel Card: Mileage allowance

Posts: 1
Joined: Thu Mar 14, 2019 3:40 pm

Car Allowance and Fuel Card: Mileage allowance

Postby Roadwarrior » Thu Mar 14, 2019 4:09 pm


I have recently been offered with a job where i would have to do 35K-40K miles an year, company is offering me £3K car allowance and fuel card for business miles. Now i have few questions:

1. Is car allownace considered maintenance and running cost of your private car OR employer contribution towards your new/private car?
2, If car allowance is not running/maintenance, then employer would pay me only fuel cost of my business miles. Fuel card means employer would pay me approx 10p/mile i'd do for business while HMRC guideline says 45p for 1st 10,000 miles and 25p onwards. Can i claim tax relief at the end of the year? Let say If i do 40K miles an years with 20% tax bracket can i apply for tax relief of
(0.35x10,000x0.20 )+ (0.25x30,000x0.20) = £2200?
3. Am i missing somthing here? can employer define car allowance as running cost?
4. If i do not use company fuel card for my personal miles how would i prove at the end of year that i havnt used company fuel card for personal use?

Please feel free ro ask if anything isnt clear.


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