07 Sept 2010: We asked HMRC for you

What rate of reimbursement should I use when an employee stops using a company car and begins using their own?

Q: An employee started the tax year with a company car and has completed over 10,000 miles at a rate of reimbursement of 12p per mile. They are now changing to using their own car. Should the rate of reimbursement be 40p or 25p.
A: You would start a fresh from 0.

Visit: http://www.hmrc.gov.uk/paye/exb/a-z/m/mileage-expenses.htm

The following sentence means that you can disregard payments for the company car.

•Payments that aren't related to expenses of business travel in the employee's own vehicle.

However, they must seek confirmation from their local compliance office also before making the changes.

Adele Briggs, Marketing Manager