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What type of expenses are normally payable in respect of car travel?
If a car is provided by your employer, it is usual for them to reimburse expenses in connection with your employment. This would include:
- road tax;
- insurance; and
- maintenance costs.
It is normal for the employee to fund his or her own fuel costs for private mileage. If your employer pays for fuel for any private mileage, this is a benefit in kind and forms part of your taxable income. If you use your own vehicle on business, you can be reimbursed up to a set limit per mile without the payment becoming taxable.