Car Allowance and hire cars

[wainy]

I receive a car allowance through work, taking it as cash. I get paid 14p or something per mile and have to claim the rest back through tax relief.

I am a consultant so work on client site and get my train and hotels through expenses. Considering using a hire car instead of the train from Brum to Leicester instead of the train. I was wondering if there are any tax implications considering I get a car allowance?

[UpTheIron]

No tax implication that I am aware of...your 'car allowance' is already taxed as PAYE.

Are you suggesting that you will claim your hire car expenses back from your employer? They must really like you if they will allow you to hire a car at their expense considering they already give you a car allowance?!

Edited to add:

Of course, if you hire a car with your own cash then you are free to claim the usual travelling expenses...the whole point of a car allowance is it gives you the flexibility to buy / lease / hire a personal car as you see fit.

Edited by UpTheIron on Wednesday 3rd January 21:26

[wainy]

UpTheIron said:

Are you suggesting that you will claim your hire car expenses back from your employer? They must really like you if they will allow you to hire a car at their expense considering they already give you a car allowance?!

No hiring a car and claiming it back from the client

[Eric Mc]

Are you a PAYE Employee?

[Fidgits]

wainy said:

UpTheIron said:

Are you suggesting that you will claim your hire car expenses back from your employer? They must really like you if they will allow you to hire a car at their expense considering they already give you a car allowance?!

No hiring a car and claiming it back from the client

do you really think the company will pay for it? seeing how they give you a car allowance already?

[wainy]

I am a PAYE employee, they have done it before on certain trips but for longer term use?

See they pay for trains and travel from office to client site (expenses reclaimed from client). Just wondered if there was any tax implications. Nothing in our policy except about using them for non business use.

[Eric Mc]

I wouldn't think that there would be any tax implications if you used a hire car. It's no different to making a claim for any expenses incurred in your employment.