Company car allowance and mileage reimbursement rates

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?

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.