Car expenses and capital allowances

[landmarkjohn]

Hi, my company pays a monthly car allowance which is added as an item in my payslip and I am taxed on this.

Can I claim for car expenses and capital allowances for maintenance and the cost of the car. My business mileage is 20,000 miles per annum and private mileage 5,000. Thanks.

 

[sean.c]

No, as far as I know, the car allowance is supposed to cover all the costs of the car.

 

[44brendan]

Depends on your company policy on the issue. Generally if a car allowance is paid a company will pay a fuel equivalent milage allowance, but the basic allowance is to compensate for other costs as mentioned above.

 

[mandelbrot]

It's very simple really - you can claim motor expenses and capital allowances, but if you do then anything you've received from the employer must be taxed. You say the allowance is taxed, but if they're paying you mileage expenses tax-free, then these become taxable too, and you could end up worse off as a result of claiming.