Hi all
I would appreciate a bit of advise on this as I cant seem to find anything definitive from HMRC.
At the moment we have some employees with company cars and we pay the advisory rates for business mileage thus avoiding any tax/Class 1A NI issues etc. The plan now is not to renew any company cars as their leases come to an end and not to give any new employees a company car. What we will do however, is pay them a car allowance each month instead.
The question is then, is there an advisory rate for mileage in this instance? Is it the same as the company car rate, or do we just use the 45p/25p rates?
Many thanks
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45p/25p
The employees are using their own cars therefore the 45p/25p rates are applicable