Pence per mile fuel claims? Any advice please.

MissBehaving

I drive a 1800 petrol Vauxhall Vectra company car. When I started with my company we were given fuel cards. These have since been taken away from us and I now have to claim my milage back on a MONTHLY basis. MY average monthly milage is probably about 2500 miles.

First off, my claims have to be in my the 28th of each month, and re-imbursement takes place by BACS on the 18th of the following month.

My issue is this. Nearly two months ago I realised that I was paying for more fuel than I was getting re-imbursed for. I worked out how many miles per tank my car does. Divided it by the cost of filing the tank and got to a figure of 13.59p. The cost of petrol at that stage was 94.9p (from Sainsburys!).

Now, I only get back 12p per mile, so it doesn't take a rocket scientist to figure out that I am paying out my own pocket to do work for my company.
The cost of petrol at the same petrol station is now 97.9p.

I have complained to my company but they say that they are regulated by what the Inland Revenue say. Is that true? If so, can it be altered?

I am at the stage where I am about to say 'Enough is enough', and tell them that I will not move out my house until they sort it out. Where would I stand legally then?

chrisw

They are sort of correct. The Inland Revenue allow about 9p/mile diesel, 12p/mile petrol (not sure of the exact figures). Your employer can pay you more than this if they wish but you pay tax on the difference.
We get 12.5p/mile petrol, 10p/mile diesel. As you say, it doesn't reflect the rising fuel prices and you need to average around 40mpg to break even.

MissBehaving

Thanks Chris. I am just so fed up with being out of pocket for this company. I work my butt off (not right at this minute however!) and am really concerned that I am losing out big time on this.

What really confuses me though is why should I have to pay tax on money that has come from my pocket to do my job.

I am so confuddled that i could cry!

Astaroth

For 1.8 company car we get 13p per mile.

If you are out of pocket or not of cause depends on your vehicles fuel efficiency and driving style. When I had a company car I was mainly doing out of town driving and looking at WhatCar the mpg for a 1.8 vectra is 51.4 so even if you knock that down to 40 for hard acceleration etc you are talking in petrol terms of under 11p a mile and so a "profit" on the expenses.

Company cars are just a tax liability these days so I no longer have a company car and for my personal car I lease from my employers I get 40p for the first 10,000 miles (which I rarely go over these days)

mrbadexample

You might have to play them at their own game a little....

Drive as economically as possible - you don't get paid to tear about, you get paid to drive safely from A to B. So, don't exceed speed limits, stick to 60 on the motorways (or 56 if you can be bothered), accelerate and decelerate gently (drive like you have no brakes). You'd be amazed the difference it makes.

It if takes you longer as a result, you may have to claim some overtime.

How closely do they monitor your claims? Do you drive to the same places all the time, or does it vary? If it varies, the odd MM (mythical mile ) might go unnoticed (just don't take the mick!)

Either that or you have tell them to give the fuel card back as you aren't prepared to subsidise their transport costs. Use your calculations as evidence, and document your requests and evidence in writing in case they get arsy.

Where do you stand on your personal mileage? If you're claiming all the miles you do, and some is personal, then you may not be so badly off. If it's only business use you claim for, then you probably need to make a stand. Are there other people in a similar position who would stand up and be counted with you?

MissBehaving

I dont claim my personal mileage back and hardly ever use my company car for personal reasons. My trips are all over the place, however, most of them include the dreaded M25, so a lot of it is stop starting anyways.
We also do not get to claim mileage to our 'base'. Fortunately mine is only 2 miles away. Some others have a base that is 20 miles away, so each day they lose 20 miles before they even start.
Most of the others drive a diesel so they are not too bad off.
Anyways, I have sent another email, and left a voice message for our HR Manager, so lets cross fingers.

Astaroth

MissBehaving wrote:

We also do not get to claim mileage to our 'base'.

Very few companies will pay your transportation costs for getting to "the office" only trips between offices/ clients/ customers etc.

Given you are receiving the government allowed amount of money for the mileage I wouldnt hold your breath. May be worth considering getting a more economical vehicle though so that you arent out of pocket.

withabix

I'm in the same position. 1900cc diesel engine in a large car (mine) and I get 10p per mile. Cost/mile = 13p. > LOSS of 3p/mile on 35000 business mile = £1050 pa. Ouch!!

Everyone who can in our company is currently reverting to company cars and choosing a 2.2 petrol Vectra SRI. Fuel cost/mile = 12-13p, reimbursement = 18p/mile!!! > PROFIT of 5.5p/mile on 35000 business miles = £1925 pa.

Work out how that's fair!!!!

No doubt I will revert to a 2.2 Vectra myself very soon!!!