Car allow. & paying both commuting & bus miles

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Good morning.

I wonder if somebody could help a little - it's making my head hurt!

We have a new employee starting soon. She has negotiated a large car allowance to be paid instead of receiving a company car (fine). 'We' have also agreed to pay her commuting mileage as she lives some distance from her normal place of work 100+ miles each way. She will also travel to various other sites occasionally.

I know the car allowance and commuting mileage is taxable, but what rate should it be paid at? Would it be 45p?

 

Thanks very much

Replies (4)

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RLI
By lionofludesch
18th Sep 2018 11:52

As it's taxable, you can pay as much or as little as you like.

Problem solved.

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By Democratus
18th Sep 2018 12:48

As it's her car sticking to the HMRC guidelines on reimbursement will much reduce the scope for argument.

A clear log of mileage will be needed to ensure you don't pay for any non business/non commute element. Nothing to do with tax, just good busines sense.

Sounds to me like it would be easier to just pay for the fuel, and possibly cheaper.

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Replying to Democratus:
RLI
By lionofludesch
18th Sep 2018 13:02

Democratus wrote:

Sounds to me like it would be easier to just pay for the fuel, and possibly cheaper.

Easier ? Yes

Cheaper ? Probably.

But maybe the employee would complain.

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Replying to lionofludesch:
By Democratus
18th Sep 2018 13:46

True...they often do.

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