Campany Car allowance & Mileage Rates

[johnnygman]

Hi

I am looking for an answer on the below

A friend of mine works for a UK company, they currently pay him a car allowance of €500 per month which is taxable through payroll alongside his salary.
He is also claiming the mileage rates Motor cars effective from 5 March 2009
Official Motor Travel in a calendar year
Engine Capacity: 1,501 cc and over
Up to 6,437k 59.07 cent
6,438km and over 28.46 cent

His employer pays him above direct upon mileage claim.
Is this allowable under revenue rules to also claim mileage from his employer while getting this allowance?

Thanks any help appreciated as he's quite worried that he's on this mileage allowance, even though it was his employer that set up the current car allowance and mileage rate.

 

[mandelbrot]

I don't see any problem with that - the allowance is just treated as additional salary and fully liable to tax, so it's irrelevant to Revenue what its purpose is.

For the purposes of claiming mileage all that matters is that it's his own vehicle and he personally bears the costs (e.g. fuel, tax, insurance, maintenance) associated with that travel.

 

[johnnygman]

I don't see any problem with that - the allowance is just treated as additional salary and fully liable to tax, so it's irrelevant to Revenue what its purpose is.

For the purposes of claiming mileage all that matters is that it's his own vehicle and he personally bears the costs (e.g. fuel, tax, insurance, maintenance) associated with that travel.

Thanks mandelbrot, good of you to reply.

I was thinking the same, but I don't know for certain and with these things you like to be able to say for definite
Seems to me that the fact it's called a car allowance is irrelvant also as long as its taxed as income then mileage rate are a separate issue.
It is his own car and he covers all assoc costs as you say...