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Posted Fri, 10 Mar 2023 14:16:06 GMT by JCWinsor
Hi, Where an employee is in receipt of a Company Car Allowance and taxed through PAYE can the employee also be reimbursed mileage at a rate of 45p per mile for the first 10,000 miles or 25p thereafter?
Posted Sat, 11 Mar 2023 08:15:17 GMT by JCWinsor
To confirm, I'm talking about an employee who receives say £700 per month in a Cash Car Allowance which is taxed as part of their salary, to either lease a new vehicle or maintain a current vehicle, in both instances the car would be owned by the employee. Are they then still able to claim mileage at the Mileage Allowance Payments Rate, currently 45p for the first 10,000 miles and 25p thereafter?
Posted Wed, 15 Mar 2023 11:46:52 GMT by HMRC Admin 32

Please refer to guidance below as the car would not be purchased with your own funds. Use the check if you can claim button for a definitive answer.

Claim tax relief for your job expenses

Thank you.
Posted Wed, 15 Mar 2023 12:43:53 GMT by JCWinsor
Hi, Thanks for the reply. To confirm, the car allowance is taxed at source and then used to purchase or maintain a private vehicle. They then use their private funds to purchase fuel. Other questions which have been asked on this site, specifically: The answer here states that MAR can be claimed where employees are in receipt of a Car Allowance. Due to the MAR contributing towards the cost of owning and running the vehicle. For Example, if an Employee receives a monthly £500 Car Allowance, as part of their gross pay, which is subject to Tax & NIC and also claims for mileage at the Advisory Fuel Rate, currently 15p which the employer reimburses. Can the employee submit a claim for the difference between the Advisory Fuel Rate and the MAP, currently 45p?
Posted Wed, 22 Mar 2023 09:13:58 GMT by HMRC Admin 25
Hi JCWinsor,

You can claim MAR.

Thank you. 

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