Fair price for milage

wendyloub

My sister has moved to the middle of nowhere and doesn't drive, so she asked me if I would bring her children home from school to her, I told her I wasn't happy and she would have to pay me, its an 8 mile round trip and my car probably does around 35 to the gallon, what would be a fair amount to ask her for? its not just the petrol there wear and tear and my own time!!

Wendyx

bluesnake

https://www.theaa.com/motoring_advice/running_costs/

bryanb

I'd tell her a very firm no. How do they get to school?

rev_henry

I'd say about 20p a mile for petrol. Be careful charging over and above what it costs you, that would invalidate your insurance.

But as bryanb says, how on earth does she expect her children to get to school. 'I don't drive, I know, I'll move to the middle of nowhere, that will make my life easier'.

HappyMJ

wendyloub wrote: »

My sister has moved to the middle of nowhere and doesn't drive, so she asked me if I would bring her children home from school to her, I told her I wasn't happy and she would have to pay me, its an 8 mile round trip and my car probably does around 35 to the gallon, what would be a fair amount to ask her for? its not just the petrol there wear and tear and my own time!!

Wendyx

If you aren't really happy to do it (which you aren't) then I'd charge minimum wage including a condition to be paid during the holidays and days off excluding saturday and sunday plus 45p/mile to cover the running costs of the car. 45p/mile is the HMRC reimbursement rate for mileage. You would need to register as self employed and pay tax on the hourly rate....or if you were a bit either way then just charge mileage at 45p/mile. No need to register with HMRC.

Otherwise just say no...you don't have the time.

bluesnake

it seems a lots of work and responsibility, an wating around after school for the kids especially if extra classes are involved.

i would rather buy her a £500 banger and lessons than be tied down the being the au pare.

you will also end updoing the shopping run too.

rev_henry

HappyMJ wrote: »

If you aren't really happy to do it (which you aren't) then I'd charge minimum wage including a condition to be paid during the holidays and days off excluding saturday and sunday plus 45p/mile to cover the running costs of the car. 45p/mile is the HMRC reimbursement rate for mileage. You would need to register as self employed and pay tax on the hourly rate....or if you were a bit either way then just charge mileage at 45p/mile. No need to register with HMRC.

Otherwise just say no...you don't have the time.

If you did that you'd probably need to plate the car up as a PHV never mind insurance!

HappyMJ

rev_henry wrote: »

If you did that you'd probably need to plate the car up as a PHV never mind insurance!

Nope no need for that. Only one client does not count as PH. Insurance would be a requirement though.

Tiddlywinks

Was this a forced move or did she chose to live so far out? Is she really down on her luck and needs some sisterly support?

Are you passing the school, have children there also or will you have to go out of your way?

All of these things factor in... I personally don't think an 8 mile round trip is so bad... for helping out a family member.

In the longer term, is there a bus service or could another mum offer a lift?

steve-L

I'd simply charge her 45p/mile which is what HMRC calculate as fair running costs under 10k/yr.

I don't see that you need to declare yourself as a business (strictly speaking you might but this is really quite tenuous as she's family) and equally why inform the insurance .... this all depends how much you trust your sister.... (I'm presuming she trusts you or she wouldn't ask you to pick up her kids!)
No need for money to change hands... presumably you spend more than this on supermarkets where she could just buy you food to a certain value or she can simply pay a portion when you fill your car.

Hence she's not paying you cash....
If you go the other route, register yourself self employed and she is earning then she could perceivably claim back some of this in tax....

forgotmyname

It can be a slippery slope doing favours like that. My sister does it all the time.

Took a friend to the interview, They the 1st few days so they could get there early to make a good impression then if i give you £20 will you take me all the time.

Then she finally clicked it was costing her £40 in fuel alone to drop them off. Because she was double the journey twice a day.