HMRC Mileage Rates....

joeyvicks

currently run my own car to which my company pays an allowance and pays mileage rates as per the HMRC schedule.

With the increase in fuel prices are these rates likely to be reviewed soon as 40p & 25p simply does not extend to covering £1.34+ per litre!!

And bearing in mind another 5p increase round the corner:mad:

wealdroam

Write to HMRC, or your MP, with your query.

Those figures haven't changed for many years.

Altarf

wealdroam wrote: »

Write to HMRC

Pointless, because HMRC merely acts on the government's instructions. It is the government who decide what the the tax rates and allowances are.

wealdroam wrote: »

or your MP, with your query.

Correct answer.

MrRedundant

Do all your calculations and I would bet the chances are unless your running an excessive luxury of a car or barely using it 40p/25p will cover what you lose by using it for business.

These rates are simply meant to ensure people are reimbursed the cost of business use; not make them a profit. If its too expensive get a bus or train and reclaim the full fare.

The fact is the rates havent changed in years but where massively generous back then. Even now they are about right.

As this page shows you need to be pretty unlucky to not be covered by 40p/25p a mile and I would suggest if your not then your car isnt suitable for business use in most cases and your expecting a tax relief for a luxury.

http://www.theaa.com/allaboutcars/advice/advice_rcosts_diesel_table.jsp

vaio

Unlucky? I think you must have posted the wrong link because although that page is for diesels (but when diesel cost £1.26 rather than the £1.35 or £1.45 it actually costs), I can't see any car that can be run for 25p per mile even if you do high miles and precious few that can be run for 40p if you do low miles

The figures are worse for petrol cars

MrRedundant

Obviously not that good at reading; unless your running very low miles or expensive car (i.e luxury and unncessary) then you will break even no bother.

HMRC states necessary, exclusively and wholly for business use thus its arguable when a car becomes necessary rather than public transport. The rate might not have changed for year but until the last few years people where quids in through mileage reclaims.

goRt

I might be wrong, but I think these are the simplified rates, you used to be entitled to do all of the calculations yourself for your specific scenario.
I always buy 2nd hand 2-3 year old low mileage cars and find the rates acceptable - I choose to drive a better car than the rates allow, but that's my choice on how I spend my money

Graham3232

My Petrol Fiesta costs 20p per mile to run or 30p if you include depreciation.

I get paid nothing for my travelling at work, so consider yourself very lucky!

vaio

do you claim the tax back?

joeyvicks

Graham get a life mate.

Your trip to work is probably 2 miles and not the 1000 a week I have to do!

Barneysmom

I've been wondering about this, the claim covers just fuel? Does that mean it's a minimum and you could claim for the car use too from your employer?
I'm sure I saw on this site someone was claiming 65p in total and was allowed?
Not explaining well am I? :)