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)
Please login or register to join the discussion.
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.
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.