Mileage rate for using own car for work purposes

teafiend

I hope this is the right place to post this... Would anyone care to share how much you can claim from your employer if you use your own car for work?

I use my car just a couple of times a year for work and get reimbursed at the rate of 40p per mile. The rate hasn't changed for at least 4 years, which seems a bit unfair given how much fuel prices have increased in that time. Before I ask them to reconsider the rate, what kind of rates do other people get please?

Thanks!

Zazen999

40p is the standard recommended max rate; most people get alot less.

SarEl

Check on the HMRC site - there is a maximum anyway, after which it becomes taxable. Can't recall now what it is, but it's pretty close to what you are getting I think.

teafiend

Thanks guys. Looks like my employer is still offering the going rate at least.

cakey

your employer is offering the maximum it can. if you got paid less than 40 pence (like me i get 25 pence) you claim the difference between 40 pence and 25 pence back from HRMC. and even then it only goes against your taxt code, not a one off reimbursement..:(

Zazen999

cakey wrote: »

your employer is offering the maximum it can. if you got paid less than 40 pence (like me i get 25 pence) you claim the difference between 40 pence and 25 pence back from HRMC. and even then it only goes against your taxt code, not a one off reimbursement..:(

It's the tax on the difference, not the difference....

pink_princess

I only get 25p per mile and do around 80 miles a month
PP

littleboo

cakey wrote: »

your employer is offering the maximum it can. if you got paid less than 40 pence (like me i get 25 pence) you claim the difference between 40 pence and 25 pence back from HRMC. and even then it only goes against your taxt code, not a one off reimbursement..:(

Contact your tax office and explain that your business mileage my vary and hence you dont want the refund dealt with through your tax code as you may end up paying too little tax. You can then claim it back in a lump sum anually.

Premier_2

AliceBell wrote: »

I hope this is the right place to post this... Would anyone care to share how much you can claim from your employer if you use your own car for work?

I use my car just a couple of times a year for work and get reimbursed at the rate of 40p per mile. The rate hasn't changed for at least 4 years, which seems a bit unfair given how much fuel prices have increased in that time. Before I ask them to reconsider the rate, what kind of rates do other people get please?

Thanks,
Alice

Some employers pay much less, but may provide insurance cover for such authorised use.

I hope if you don't get insurance cover by the employer, that the vehicle is covered for business use. If that is the only reason you have business cover and you rarely use your car for business purposes, the mileage allowance may not even cover the extra premium you pay.

In such circumstances, consider asking the employer to provide a vehicle of their own (or get them to hire one) if they require you to travel on company business.

teafiend

Yes, I had to get business cover on my policy. My employer is a stickler for that... and frankly quite right too. (I wouldn't fancy arguing with an insurer if something happened while I was technically working and I wasn't properly covered!) I think I do just about enough miles so that the allowance I get covers the petrol and insurance increase and nothing else. Ah well... better than a poke in the eye.

mpg

cakey wrote: »

your employer is offering the maximum it can. if you got paid less than 40 pence (like me i get 25 pence) you claim the difference between 40 pence and 25 pence back from HRMC. and even then it only goes against your taxt code, not a one off reimbursement..:(

Your employer can pay you however much he likes. If he wants to pay you £5 per mile he can. Anything over 40p pm for the 1st 10k then 25p pm Thereafter is taxable as an income.