# Allowance

> Recurring fixed payment covering an ongoing business expense such as personal-vehicle use.

**URL:** https://quilometragem.com/glossary/allowance

**Summary:** Recurring fixed payment covering an ongoing business expense such as personal-vehicle use.

- An allowance is a fixed periodic payment a company makes to an employee to cover an ongoing business cost — gas, phone, or vehicle.
- Unlike a per-trip reimbursement it comes as a set amount.
- It can be taxable (non-accountable) or tax-free (accountable, with substantiation).
- Typical US car allowances run US$400–US$700/month; Brazilian R$600–R$1,500.

An allowance is a fixed periodic payment a company makes to an employee to cover an ongoing business cost — gas, phone, or vehicle. Unlike a per-trip reimbursement it comes as a set amount. It can be taxable (non-accountable) or tax-free (accountable, with substantiation). Typical US car allowances run US$400–US$700/month; Brazilian R$600–R$1,500.