47 NAT

...so how exactly does this work as up to now I've always had company cars.

I know you'll need to service, insure, etc it yourself, but whats the tax implications if say the allowance is approx £350-400. Also how does it work with charging back business mileage and differentiating private miles (any discrepencies in paying it)...

Nath

DPat

You'll pay tax on the £400, so deduct 40% meaning you'll get £240.
Now the good news:
You'll save the tax you've been paying on the scooby say £160 per month (based on the old rules, over 2.5k business miles per year, but less than 18k, tax at 40%)

You can also claim back the business mileage from the tax man using the simple or complex method (both less any money paid by your employer)
Simple: gov. publishes a table giving rates - something like 40p / mile for the 1st 4k, etc.
Complex: keep all bills and then calculate %age due to business mileage
Your chosen value is then used to reduce your tax bill (you save 40% of the cost).

My employer does all this for me and pays all of my petrol.

boomer

Nath,

have a browse around http://www.inlandrevenue.gov.uk/leaflets/c1.htm for loads of useful information.

mb