Car Allowance Uk Hmrc
Uk mileage rates can differ however hmrc advisory fuel rates state that in most circumstances you can claim business mileage at a rate of 45p per mile for the first 10 000 business miles in a year this is an increase of 5p per mile since april 2011 and then 25p per.
Car allowance uk hmrc. On the other hand you cannot claim a mileage allowance if you use a company car. The car allowance vs mileage allowance for uk employees usually happens at the beginning of an employer taking on its uk based employee. Published 13 june 2013 last updated 4. Basically you can claim over 45p tax free as a business mileage allowance if you use your own car for a business journey.
The attached document is classified by hmrc as guidance and contains information about rates and allowances for travel including mileage and fuel allowances. It s really important to decide which scheme is right for you to make sure your staff get the right benefit and you don t pay either too much ta x or just as bad fail to meet your obligations and fall. 8 200 for senior managers. See your v5 certificate or go to carfueldata direct gov uk.
From tax year 2011 to 2012 onwards first 10 000 business miles in the tax year each business mile over 10 000 in the tax year. If you bought a car on or after 6 april 2009 the allowance you claim depends on your car s co2 emissions. 10 300 for company heads directors c suite individuals. A recent survey found that the average car allowance in the uk is as follows.
This includes a vehicle you ve bought using a car allowance. While these schemes usually use car leasing a car allowance offers the employee a greater level of freedom and flexibility to use other finance options or outright purchase. This is called an approved amount.