Quote:
Originally Posted by sambuca2907
The 40p per milefor the 1st 10,000 miles and 25p there after is the HMR&C maximium limit for tax free mileage expense. So if you payed 41p - you'd have to pay tax on it. Or if you were charged 30p - you wouldn't pay tax on the 1st 10,000 miles - then after that you'd have to pay tax.
Unfortunately the government can't set a min limit on what companies pay out to their employees as a mileage allowance, this is set by the company themself. Some companies pay 15p, others 25p - others go the full wack and pay out 40p or sometimes more.
I'm actually very hot on the subject as I have just turned down a very good job due to the fact that they haven't offered me enough car allowance and researched it thoroughly!
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I understand this but my point is that the figure was set in the 80's when fuel was relatively cheap. This should increase with the added costs of motoring. Everything set by the government is done on a percentage basis as this obviously fluctuates until it is beneficial to throw in figures. They don't set VAT at 17.5 pence /litre they set it at 17.5 %. Anything that is meant to hide real figures they use an amount. This is the same effect as stamp duty on houses, it never fluctuates with house prices, it is kept at an unrealistic low so that more people fall into this bracket.
We are constantly told to use our cars less but who gives the planning for large retail centres with thousands of car parking spaces.