HMRC Mileage Rates....

MrRedundant

Firstly depreciation;

Well your car depreciates anyway so unless you buy it solely for business then its unlikely the full depreciation per mile comes in as it would still depreciate sitting at home

Those out of pocket are driving gas guzzlers

I think the rates do their jobs; it is those who with high mileage or low mileage who lose out and in these cases you should either negotiate a package to recognise the high level of travel or refuse to use your own car.

I doubt its any cheaper to a company paying mileage rate than public transport rates, hire car or lease cars in most cases

Premier_2

joeyvicks wrote: »

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:

joeyvicks wrote: »

Graham get a life mate.

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

What car do you run that does less than 15 miles to the gallon? :huh:
(representing the 40p per mile based on £1.34 per litre)

If you are really doing 50,000 miles per year on business, talk to your employer. It sounds like everyone would be better off if they provided you a fully financed vehicle for that sort of business mileage

Graham3232

joeyvicks wrote: »

Graham get a life mate.

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

I actually do 25-30K miles a year and most of this is for work as i travel to different sites. Its not a company car and have to pay for it.

The 20p per mile included insurance, tax, servicing etc. I worked it out last year. The actual fuel was 8p per mile although this will be nearer 10p now with recent increases. I do most of my own servicing and the car is only work 3K anyway. Costs me on average 5k per year. So as I said before count yourself lucky you get an allowance even if it does not fully cover your costs.

iolanthe07

The most worrying thing is that the 40p hasn't changed for many years, so the government are clearly letting its value erode over time. They did the same with benefits in kind which they started taxing (IIR) back in the 1980's. At first the tax only applied to the 'higher paid' and was set at £8,500 a year - which was fair enough.......then. But they left it at £8,500, so that over a quarter of a century later inflation has meant that everyone gets taxed on their benefits in kind now (except perhaps some part-time workers). This was sneaky.

MrRedundant

iolanthe07 wrote: »

The most worrying thing is that the 40p hasn't changed for many years, so the government are clearly letting its value erode over time. They did the same with benefits in kind which they started taxing (IIR) back in the 1980's. At first the tax only applied to the 'higher paid' and was set at £8,500 a year - which was fair enough.......then. But they left it at £8,500, so that over a quarter of a century later inflation has meant that everyone gets taxed on their benefits in kind now (expect perhaps some part-time workers). This was sneaky.

It hasn't changed because its generous. Even now the majority break even on the 40p - what it is intended to do. It is not a benefit and is a reimbursement. If people insist on using cars as luxury items for work purposes then they don't deserve full reimbursement. For most company cars a economical fiesta, corsa and so on is more than suitable. If they want a big comfy estate then they are making a choice and should pay the extra

Re the £8,500 I dont see why benefits shouldnt be taxable for all.

thescouselander

MrRedundant wrote: »

It hasn't changed because its generous. Even now the majority break even on the 40p - what it is intended to do. It is not a benefit and is a reimbursement. If people insist on using cars as luxury items for work purposes then they don't deserve full reimbursement. For most company cars a economical fiesta, corsa and so on is more than suitable. If they want a big comfy estate then they are making a choice and should pay the extra

Re the £8,500 I dont see why benefits shouldnt be taxable for all.

Although such cars may be suitable for people doing lower milages I don't think they are that suited for those putting in longer distances. Comfort goes a long way to preventing driver fatigue and these smaller cars aren't that comfortable compared to bigger ones.

I think to expect people doing a lot of miles to use a super mini is unrealistic. They just aren't designed for that sort of motoring.

vaio

but in any event we are talking about people using their own car for work purposes, fine if you have a fiesta corsa or whatever, less good if you have three teenagers, a dog and caravan (and a car that matches)

thescouselander

Indeed. I've got the car I have got for my own reasons - it costs more than 40p per mile to run. That does mean I usually refuse to use my own car for work because HMRC rules make it not worth doing.

Lifes_Grand_Plan

thescouselander wrote: »

Indeed. I've got the car I have got for my own reasons - it costs more than 40p per mile to run. That does mean I usually refuse to use my own car for work because HMRC rules make it not worth doing.

If you have the car for your own reasons then you have to pay the purchase cost, insurance, maintenance etc anyway...

So what car do you drive that it costs more than 40p per mile in petrol and a small contribution towards insurance / wear and tear etc?

My car gets 70mpg and costs 8p per mile to run.

Even if your car did 20mpg then that would only be about 30p per mile fuel cost leaving 10p per mile contribution to upkeep and wear & tear...

wealdroam

MrRedundant wrote: »

It is not a benefit and is a reimbursement.

MrRedundant wrote: »

Re the £8,500 I dont see why benefits shouldnt be taxable for all.

So is it a benefit or not?

You don't seem too sure.