UK Employer pays 20pm tells staff HMRC "make it up" to 45p total

May 17, 2016
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Complete tosh?

My understanding is HMRC will give you an allowance based on this shortfall. 10000 miles at 25p shortfall is £2500.
So its £2500 you don't pay tax on. If you're lower rate tax payer that means £500 saved.

In effect, works out 20pm from employer then 5pm saved in tax.

How on earth a big employer doesnt understand this and thinks HMRC will make up the rest I'll never know!


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