After a bit of advice as this is new to me!
We recently offered a new BDM a car allowance, which is not something we've done before. This is just paid via monthly payroll.
They've now put in their first mileage claim and have put this at the standard 45p per mile - is that correct? Is it purely company discretion as to whether the same mileage can be paid if already receiving a car allowance, or are there any rules where we can only pay, say, 15p per mile?
Thanks in advance!
Replies
Thanks both - very helpful!
Hi Becky
This is a nice try on behalf of the BDM ;-) we treated employees who chose to receive a personal allowance for a company car as opposed to a physical company car, at the Company Car user rate for their fuel on the basis they have the benefit of the company car, even though they are sourcing it personally.
This used to fluctuate based on the price of fuel and as Louise says the engine size, I am sure there are some rates on HMRC.
Hope this helps
Sarah
Here is some guidance but basically you will need to put an expenses policy in place in order to pay the going rate for the engine size, happy to email you a copy of ours if that helps let me have your email address
https://www.gov.uk/government/publications/advisory-fuel-rates/advisory-fuel-rates-from-1-march-2015