Mileage allowance

Mileage allowance

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My client who is an employee used his own vehicle for business purposes he was given a fuel card by his employer which they paid the tax on so it is not shown on his P11D, he was also give an allowance each month for using his own vehicle. He has approached me as many of his collegues in the same situation have been alble to claim milage allowance and therefore claim a tax rebate. Is this correct and if it is how much can he claim?

Many thanks
Carol
Carol Williams

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By 0411134
17th Sep 2004 15:55

Can claim mileage allowance
The monthly car allowance will (should) have had tax deducted under PAYE. The fuel card has had tax paid on the benefit of cost of all the petrol bought, ie. for both private and business miles. So the employee can claim tax relief for the mileage allowance for the business miles (which excludes commuting)at the rate of 40p for the first 10,000 miles, then 25p per business mile for any excess. The employee should keep a log of business travel to give evidence of the miles travelled, in case the IR were to enquire.

Adrian

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