Tax on car allowance

Chevalier

Registered User
Messages
14
Hi,

I have been offered a car allowance of approx. €8K with nothing extra for work miles driven, this gets added onto my salary which I then get taxed on. Is it possible to claim back some of this tax if I keep a record of all business miles done(excluding getting to/from work)?
I assume the Gov. see this 8K as something similar to BIK so they tax you, but if I start doing work miles it should reduce... like the BIK would!

Any ideas?

Thanks
 
Not sure about this came across something similar saomewhere recently probably on AAM but can't find the tread now.

If you do business mileage and your only source of repayment is a car allowance then you are entitled to have it paid as a business expense up to the max of your car allowance. You may be entitled to civil service rates. You may have to clear this with revenue before hand. You or the campany will have to keep a log of business mileage.

If the above is correct then he company simply deducts the calc amount from the car allowance, you save tax @ 41% and PRSI the campany saves 10.5% PRSI. and gives you the full amount.
 
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