I have been asked to look at our company car lease scheme. Under the scheme the company and the employee contribute towards the cost of the lease car. The company’s contribution is partly based on mileage, so will pay so much per mile based on estimated mileage.

Can an employee then claim the cost of petrol as well as recieving a payment for mileage?

A colleague has stated that there maybe an inland revenue rule saying that companies cant pay both they have to pay either petrol or so much per mile.

Is this true?

Help!
rachel haake