What type of expenses are normally payable in respect of car travel?

If the car is provided by the employer it is usual for the employer to reimburse expenses in connection with the employment. This would include:

• fuel
• road tax
• insurance
• maintenance

It is usual for the employee to fund his or her own fuel costs for private mileage.

The Inland Revenue counts the provision of a company car as a benefit, the cost of which, in accordance with an Inland Revenue formula, is regarded as part of an employee's taxable income.

Payment of mileage allowance may be made to employees using their own cars during the course of employment. Above a certain mileage, or a rate per mile, the allowance becomes taxable.

Reimbursement of car parking charges may also be made, but would not be taxable.