Cost to employer per mile

steph_e86

My boss said he would pay my mileage when I run errands for him. Does anyone know what I charge per mile? I cant seem to find it on the HMRC website!

Ebe_Scrooge

40p :

http://www.hmrc.gov.uk/rates/travel.htm

Bear in mind, the idea of an allowance is that it goes some way to cover all running costs - fuel, tax, insurance, maintenance, etc. etc. etc. So a figure of 40p is necessarily an average - it costs rather more to run a Ferrari than a Mini ! But 40p is an accepted reasonable average.

lucylucky

Your boss should decide what he wants to pay you not what you want to charge him.

withabix

lucylucky wrote: »

Your boss should decide what he wants to pay you not what you want to charge him.

The boss should run his own errands if he doesn't want to pay 40p per mile!

Anyway, it is 45p now, since the Budget.

One word of warning though - your car must have Class 1 Business use included on your car insurance, otherwise you are not insured when you are running these errands.

It won't have if you have normal (SD&P + Commuting) insurance.

Cost will be arrpox 30% extra on top of your current insurance premium.

Bongedone

It only cost an extra £20 for me for business class one.

Hammyman

Mine was free.

Hotspur

Agree with withabix; the rate is now 45p

Ebe_Scrooge

Hotspur wrote: »

Agree with withabix; the rate is now 45p

Hee Hee, nice to see that HMRC keep their website up to date LOL !!! Blimey, if you can't trust a government website to give you accurate information, who can you trust ??????

loofer

steph_e86 wrote: »

My boss said he would pay my mileage when I run errands for him. Does anyone know what I charge per mile? I cant seem to find it on the HMRC website!

Charge him whatever you want... or s/he can offer what ever they want or you meet somewhere in the middle. Most companies have a travel/expenses policy.

As for the 45p per mile. That is for tax purposes. You only pay tax on the amount reimbursed which is more than 45p per mile. So if you agreed 50p a mile, you would pay tax on the additional 5p for every mile. If it was £5 per mile (you wish) then you would pay tax on the additional £4.55 for every mile.

Similarly, if you were paid <=45p/mile then you would not have to pay tax.

Kilty_2

Bongedone wrote: »

It only cost an extra £20 for me for business class one.

Depends on the insurer and your risk profile just like anything else associated with insurance

The last time I got a quote for 1k miles business use they wanted £350 on top of my £750 premium at the time. I decided to let my employer take the strain hiring me a car every time I had to make a business trip

Gers

loofer wrote: »

Charge him whatever you want... or s/he can offer what ever they want or you meet somewhere in the middle. Most companies have a travel/expenses policy.

As for the 45p per mile. That is for tax purposes. You only pay tax on the amount reimbursed which is more than 45p per mile. So if you agreed 50p a mile, you would pay tax on the additional 5p for every mile. If it was £5 per mile (you wish) then you would pay tax on the additional £4.55 for every mile.

Similarly, if you were paid <=45p/mile then you would not have to pay tax.

However, if your employer chooses to not use the HMRC guidelines and pay you less than the allowable rate you can claim tax relief on the difference. I did it when my mileage rate was less then allowed, now I have changed contracts and I get the maximum allowed.

£0.45 per mile for the first 10,000 miles and then £0.25 per mile for another (forgotten) number of miles, perhaps all the remainder?