Business Milage? Claiming it back?

imcognito

lisyloo wrote: »

As you point out, sometimes it's very convenient to use your own transport.
However he should be properly compensated for that.
Personally I get 40p per mile which I find makes a profit, but I expect to at least break even.
If not then there needs to be some negotiation.
It's not unreasonable at all to expect this to be covered.

Thanks, I expected more TBH too when he told me it was only 20p i was a bit shocked!! I will go thru his contract later see if there anything in there and get him to say something if he not even breaking even on it, will need to work it out really I suppose with insurance types brakes and fuel!

lisyloo

Is he only travelling to one permenent place of work?
If so then that's ok, but if not then commuting insurance is not enough, you need business.

A lot of people overlook this and drive to training courses or another office when social, domestic and pleasure insurance only usually cover you for a single permenant place of employment.

imcognito

Yeah Ive got a feeling he will need business too.. Its usually just the one office but he does have to go other places when the Sh*t hits the fan!

Ive just done a quote online and stuck it up by about £170 a year.. yikes...

He gonna get a talking to when he gets home I think and a sit down in front of this thread LOL!

lisyloo

Well certainly he needs to have a talk with his employer but what he must not under any circumstances is drive without insurance.
Apart from the moral issues (which are quite serious), it's illegal and there are serious penalties (including getting the car crushed, points etc.).

You really need to have a talk with the employer, but try to offer them solutions.
Employers prefer consttrcutive solutions and not just having problems dumped on them.
If you have a good justification and are reasonable then a good employer will listen.

caz128

imcognito wrote: »

You know what makes it worse??? They are also asking for Petrol receipts... the employer that is.. Now tell me why would they need petrol receipts when he is claiming back milage?? It makes no sense to me because surely when he buys petrol has no reflection on when he is actually doing milage for them and they kick up a fuss when he has 5 trips in a week and not 5 receipts to "back it up"

his employer needs receipts to comply with HMRC rules regarding claiming back a portion of the VAT paid on employee mileage claims.

CluelessJock

Taxi, too expensive + car hire too expensive = pay the going rate.

Try looking at it from the employer’s side; what is the saving to the employer by paying your husband to use his car, rather than how much does it cost him to use it. That way it is much easier to ask for a decent rate.

A hired car for a week irrespective of whether there is a call vs. £1 mile only when he is called is a huge saving for the company. Should be easy to put numbers to it to demonstarte the point, don't forget the time and effort involved in sourcing the car.

If your husband approaches his employer and says I want 40p per mile or hire me a car when I am on call, it would make financial sense to pay the 40ppm.

It is not unreasonable to expect proper reimbursement.

Bear in mind the 40p per mile is only the rate at which tax is not payable (up to 10 000miles); a rate above this can be negotiated with the higher rate attracting tax. Folks sometimes get the idea 40p is the maximum allowed.

spoonfedspencer

Doesn't the allowable HMRC tax rate drop to 25p mile afer 10,000 miles in the tax year, because if it does, you would need to be careful with the suggested argument with your employer if you do more than 10k miles per year as the cost has dropped.