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Mileage allowance if a client has a company car

What is the rate the client can claim?

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I have a client who has up until now used his own car for his employment and claimed the usual 45p and 25p per mile rates.

The employer is now making his employees take company cars to ensure they have reliable travel and has said he will be informing HMRC of the benefits his employees now has.

My question is what is the client now entitled to claim per mile? The 45p accounts for tax, insurance, wear and tear etc and of course the client won't now suffer these costs so I assumed it would be a lower rate. Can anyone clarify this situation please?

Thank you very much in advance.


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By johngroganjga
08th Sep 2016 15:11

Surely the employer has announced the new mileage rates that go with the new cars?

If not why does your client not just ask?

The only answer you will get on here is what is the highest figure the employer can pay without any of it being taxable - the answer is between 7p and 19p depending on the type of fuel and the engine size. Your client's employer's expenses policy may well be guided by those rates.

Only the employer can tell your client how much he can claim.

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By Chipette
08th Sep 2016 14:15

Is your client being reimbursed by the employer or does he intend to make a claim in his SATR?

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By craig preece
08th Sep 2016 14:48

If it is a Company car what costs will the employee be incurring?

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Replying to craig preece:
By johngroganjga
08th Sep 2016 15:12

Presumably fuel.

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