Company Mileage Allowance

fluffbrain

I feel our company mileage allowance is too low especially with current fuel prices, inflation etc and wondered if anyone had any info to back up a request for a rise.

The situation is we use our own cars when visiting customers (therefore have to insure for business use etc) and claim a mileage allowance of 27.5p per mile

What would be condidered a realistic figure to allow for fuel, depreciation, wear & tear and all other associated running costs? I have done a quick search but cannot find anything to back up my feeling that this is not covering the costs we are incurring. I'll need a good business case to wring any more money out of the powers that be.

Just as a by the way, I KNOW the directors claim back at 40p per mile. Grrr :mad:

KeithP

The AA publish tables of car running costs.

They should help your cause.

cyclonebri1

fluffbrain wrote: »

I feel our company mileage allowance is too low especially with current fuel prices, inflation etc and wondered if anyone had any info to back up a request for a rise.

The situation is we use our own cars when visiting customers (therefore have to insure for business use etc) and claim a mileage allowance of 27.5p per mile

What would be condidered a realistic figure to allow for fuel, depreciation, wear & tear and all other associated running costs? I have done a quick search but cannot find anything to back up my feeling that this is not covering the costs we are incurring. I'll need a good business case to wring any more money out of the powers that be.

Just as a by the way, I KNOW the directors claim back at 40p per mile. Grrr :mad:

I thought this was set at a minimum by "government" guidelines? at least it was 3 years ago when I was at work, not that I agreed with it.

Good luck, and change companies ;)

dzug1

40p is a maximum, not a minimum

Andy_L

Although they can pay more, you just have to pay tax on the excess.

You can claim the tax back on the difference if your employer pays less, ie 20% or 40% of 12.5p/mile in your case

cyclonebri1

so it is 40 not 28 pence as the base line then???

alleycat`

The guidelines for renumeration come from HMRC.

http://www.hmrc.gov.uk/cars/advisory_fuel_current.htm
&
http://www.hmrc.gov.uk/rates/travel.htm

I was under the impression they tended to have to give a good reason to deviate from these values (to the tax man).

dzug1

There is no baseline for the employer - he's free to pay nothing if he wishes and can get away with it with his employees.

40p is the maximum HMRC will allow as a tax free expense.