What Car? Q&A - Making the most of company mileage

Q: I’m ditching my company car and taking advantage of the cash allowance my firm offers. I will be getting 30p per mile from my company for business mileage but understand that I am entitled to get up to 40p tax free. Is there anything I can do to recover the extra 10p?
G Cheedham

A: It’s up to your firm to decide how much they pay you for every business mile – the company is not obliged to match the Government’s maximum tax-free rates.

If your company doesn’t match the government figure, however, you can claim tax relief on the difference. In this case, you will be able to deduct 10p from your taxable income for every business mile you cover.