We pay 9p for diesel, 12p for petrol per mile to company car drivers.
However, we have several drivers who take Cash in Lieu of a Company Car. These drivers receive an amount per annum and 2p extra per mile towards depreciation and running costs as they are using their own cars for business purposes.
What I need to know is:-
1) is 2p per mile sufficient to cover depreciation, etc.
2) is it usual to factor this into the mileage rate or the amount paid per annum?
If anyone reading this question operates a company car fleet or could advise their company policy in this regard it would be much appreciated.