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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?


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21st Jun 2011 09:10


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.

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21st Jun 2011 09:45

Agreed -

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

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