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Posted Mon, 02 Oct 2023 16:21:01 GMT by Alhaslam33 Haslam
Three quick questions please... If you fully own your car (not leased or via a loan) and are in receipt of a car allowance that is taxed through PAYE so subject to tax and NIC. 1 - What mileage rate for business miles is recommended by HMRC please? I believe this to be the 45/25p rate but would like absolute clarity. 2 - If the company reimburses at less (I believe they don't have to follow your guidance) - this is when we can claim tax relief on the difference ? 3 - is this eg correct - if a company pays a flat rate of 25p per mile we can claim tax relief on 45-25 = 20p per mile for the first 10k miles then nothing after. So if we do 20k miles in a year and pay 20% tax we could claim £400 back ( 10,000x20p = £2000 x20% = £400) nothing for the second 10k miles as this is at the rate set?
Posted Thu, 12 Oct 2023 07:19:06 GMT by HMRC Admin 20
Hi Alhaslam33 Haslam,

1. Yes if your own car for business then HMRC rates are 45p for the 1st 10,000 miles & then 25p
2. Yes if your employer pays less you can claim relief on the difference 
3. Yes that calculation would be correct. 

Thank you.

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