Petrol allowance for work

Hintza

HappyMJ wrote: »

See what they say then.

NEXT candidate please!!!!

Hintza

flyingscotno1 wrote: »

I think the milage allowance at 40p/mile is generous enough.

On my lease car it wouldn't have. I can calculate the cost per mile gvery easily since I have a 10k mile limit and before petrol, VED, servicing and insurance we are already at 49.28p/mile (payment of £365/month + deposit).

So my costs are around 76p/mile. once you add all the other stuff in.

AdrianHi

flyingscotno1 wrote: »

I think the milage allowance at 40p/mile is generous enough. Even deducting the office home journey I find it covers the bills easily, but 22p/mile might be tighter.

What about the annual depreciation bill on your car?

40p per mile is just enough to cover total cost of use on a small car like a basic spec. Corsa bought new and run for 3 years - equivalent to the company car situation where someone will lease a car for 3 years.

So what about "family" people requireing a family sized car like a Mondeo / Vectra (Insignia) now?
Something like that is in the 50p to 60p per mile range.

liam8282

Off topic slightly, but....

When was the last time the mileage rates changed? Seems they are a bit out of date now.

Hintza

liam8282 wrote: »

Off topic slightly, but....

When was the last time the mileage rates changed? Seems they are a bit out of date now.

Not sure but I think 10-15 years ago somone will confirm.

AdrianHi

Hintza wrote: »

Not sure but I think 10-15 years ago somone will confirm.

From 2002/2003 tax year they scrapped the old scheme where you got paid more if you had a bigger engine size and went to the flat rate 40p for the first 10,000 miles and 25p thereafter. The rates have not changed since.
This year they have changed guidance notes relating to this:
http://www.hmrc.gov.uk/mileage/employee-factsheet.pdf

Here are the rates:
http://www.hmrc.gov.uk/rates/travel.htm

I've claimed for my business mileage this way from my own company since 1996. Always seemed too much hassle to administer a company car and the tax treatment in recent years made it the expensive way for me to do it.

lisyloo

When was the last time the mileage rates changed? Seems they are a bit out of date now.

The cost of motoring hasn't changed much though and you'd need to look at that.
Certainly fuel is more expensive, but buying cars is much cheaper than it used to ve and service intervals have got bigger.

Whether 40p cover it depends on what car you have, but should be adequate for most.

I wouldn't accept 22p per mile, but I don't have a car, so I'd expect one provided if it'spart of the job, but I realise that not everyone can be choosy and walk away, but I don't think it's reasonable.

flyingscotno1

Hintza wrote: »

On my lease car it wouldn't have. I can calculate the cost per mile gvery easily since I have a 10k mile limit and before petrol, VED, servicing and insurance we are already at 49.28p/mile (payment of £365/month + deposit).

So my costs are around 76p/mile. once you add all the other stuff in.

But then it is not really designed to pay your lease or cover total motoring costs because it is only an allowance to cover costs over and above normal running costs for using your private car for business.

My last journey gave me £21 of which fuel was £4.58. Other costs would have had to have been paid anyway since it would sit in a car park if not used, but £16.42 should cover the wear and depreciation quite nicely.

A heavy user may be disadvantaged, but it is probably not fair of a company to make a heavy user do business journeys in a private car.