Company car/car allowance mileage rates

[anonymous-user]

Hi all

I currently have a company car which I use for personal use and travel around 8-10k miles on business.

For various reasons, this car will be replaced next year with a car allowance (not my choice, I would rather keep a company car).

The car allowance will be £250 per month.

Now here is my specific question: I currently claim company mileage back from the company at the HMRC company car rates, so for me that is 9p per mile.

When I have the car allowance, what rates will be payable? The low company car rates (say the 9p if I get a small capacity diesel) or will it be the higher 45 pence per mile for 'using your own car'?

Reason being is that if it is the lower mileage rate, I am going to be well out of pocket on the deal. I have had a quick google, but can only find company car or personal car mileage rates, and very little to do with mileage rates for car allowance.

Thanks all.

Lewis

[theboss]

The company can pay whatever rate they choose, the HMRC 45p/25p rates are the maximum at which payments can be made free of income tax and NI contributions.

[andy-xr]

Whatever the company pays. You can claim tax relief on the difference between that and 45ppm for the first 10k miles and 25ppm on miles after that

£250 gross isnt great though, it'll get taxed at normal salary rate so you'd see £125-£150. If you can stick with the company car I'd do that. Tell them 'you'll bring it in tomorrow' otherwise you'll end up sticking £900 down on a 3x23 for a Ka