How to work out cost per mile

Counting_Pennies_2

I wonder if you can help, a friend has driven me around for over 360 miles over a few days.

I would like to give her money to cover all the mileage. I am not sure what pence per mile is reasonable/generous.

Would any one be able to advise me please?

Many thanks

claret_mike

I know how many miles I get from my tank and what it costs to fill up

cost to fill tank
miles gained from full tank = £ per mile per tank.

what sort of car is it?

My fuel guzzler = 23p per mile

A more sensible car I would expect to be around half this (11.5p per mile) in an urban environment - less on a long run

There will be wear and tear to consider.

lincroft1710

45p per mile, is reckoned to be the average cost of running a car.

DUTR

Counting_Pennies wrote: »

I wonder if you can help, a friend has driven me around for over 360 miles over a few days.

I would like to give her money to cover all the mileage. I am not sure what pence per mile is reasonable/generous.

Would any one be able to advise me please?

Many thanks

Give her £100, that should cover the tank of fuel and something for her time, she may decline, but insist or insist on retruning the favour in some way.

Richard53

Depends how generous you want to be. If you want to cover the petrol cost only, then work on 15 to 20p a mile. If I were the driver, I would be happy with that.

If you want to cover all the running costs (which is what I would expect if I were using my own car for my employer's business and being reimbursed), this would have to cover tax, insurance, servicing, depreciation etc., and I would expect 40 to 50p a mile.

I think the maximum reimbursement allowed under HMRC taxation rules is 40p a mile, although that may be out of date, so that's a guide for you.

Pont

Richard53 wrote: »

I think the maximum reimbursement allowed under HMRC taxation rules is 40p a mile, although that may be out of date, so that's a guide for you.

HMRC rates are 45ppm. On HMRC rates this would equate to £162 for the 360 miles. However, as a previous poster suggested it would depend on the car - 360 miles would cost me in diesel around £40.

£100 would seem an appropriate sum - enough, but not insulting.

Richard53

Pont wrote: »

HMRC rates are 45ppm. .

Thanks for that. It's been a while since anyone paid me for my petrol, more's the pity.

Pont

Richard53 wrote: »

Thanks for that. It's been a while since anyone paid me for my petrol, more's the pity.

Lol - I get my 45ppm. Believe it or not, I end up slightly in profit - not many can say that these days!

However, now have a totally nerdy car (my children are soooooo ashamed)!!!!!

DUTR

Pont wrote: »

Lol - I get my 45ppm. Believe it or not, I end up slightly in profit - not many can say that these days!

However, now have a totally nerdy car (my children are soooooo ashamed)!!!!!

We get 28ppm but can claim the tax on the difference from 45ppm, when I was working in a more distance office, the extra 9 miles each way left me 'in profit' as the car was running more frugal the extra distance :cool:

Richard53

Profit or not, depends on how you look at it. When I was getting around 30p a mile (my employer was not generous) I regarded it as roughly half profit. My reasoning was that I would be running a car anyway, for my own reasons, and that therefore the standing or fixed costs, such as road tax, insurance, RAC membership ect were things I would be paying even without the business mileage, and that what mattered to me was that my fuel was covered, and probably as much again on top. In addition, it was a kind of compulsory saving, as I got say £50 at the end of the month, but the £25 I had spent on petrol was long gone and forgotten about.

Yes, I know there are all sorts of flaws in this reasoning, but it was nice while it lasted.

Pont

It's all swings and roundabouts. My regular commute, and associated costs, are down to me. When I work away from my base - I'm 'quids in'. In all honesty, I probably break even over the year.