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Oct 6, 2022 · What are the HMRC mileage rates in 2022? On 1 June 2022, HMRC issued the current advisory fuel rates which, for example, are 14p for petrol-fueled cars with an engine size of 1,400cc or less. Car allowances however will incur additional National Insurance and Income Tax payments based on the tax bracket the employee falls into as a result of having the car allowance added to their base salary.
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How much National Insurance do you pay on a car allowance?.
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If it is under £2,500, you can file your claim on your self-assessment tax return.
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If your claim is over £2,500 then you must file a self-assessment tax return.