Share this content
0
2
727

Mileage allowance

Mileage allowance

Probably daft question but it's late and brain stopped working about an hour ago.

If a client is given a car allowance through his payroll, say £400pm, can you confirm he may claim business miles against his income at the prescribed rates?

Replies

Please login or register to join the discussion.

21st Jun 2011 09:10

Definitely

Yes, the "car allowance" is basically just a salary payment, call it what you want but its additional salary.

He can, therefore, like any employee, make a claim for allowable business mileage against his employment income at 45p/25p.

Thanks (0)
avatar
21st Jun 2011 09:45

Agreed -

Provided that the car allowance is subject to tax & NI as normal.

Thanks (0)