CLAIMING MONTLY MILEAGE...CAN i BE MORE SAVVY?

darcy87

Hi,

I work for the local government, I pay out a couple of hundered per month in travel but have to wait for the next month to have it reinbursed and sometimes this can be up to £500 in mileage per month, Currently I am able to manage to pay this as I have a free overdraft which acts as my buffer, but that will soon be coming to an end.

Are there any savvy ways off getting past this???? So I wont be charged by my bank for the use of an overdraft.

I have considered getting a 0% interest credit card, but I realise I would need to be on top of this all the time as it will be for a time limited period.

Any tips or advice would be great.

Thanks

grumbler

Almost all CCs don't charge you any interest on purchases if you pay the balance in full every month, and you have about 20-25 days to pay the balance after the statement is issued.

New Luma 4% cashback card (supermarkets and petrol)

You'll need at least £1000 credit limit to safely spend £500 p.m.

If you need more than 20 days then your only options are either to save £500 to stop getting overdrawn or to get a card with 0% introductory offer on purchases for a limited time.

Some banks/BSs offer a free overdraft to new customers too for a year or so.

IIRC, First Direct offer a permanent £250 interest free overdraft (don't take my word for this).

eskbanker

Any credit card will help given the inherent lag between making the purchases and being required to pay for them - you'll get up to a month from purchase to statement date and then several weeks more before settlement is due, and if you're able to pay the CC balance off in full then you won't be charged any interest. If you can align your expense claims with your statement dates (or vice versa) then you should be able to make this work without incurring any extra cost....

InsideInsurance

You mention it is mileage rather than expenses, so presumably your outlay is much less than what you get in when your claim is paid?

Most of us that generate a fair amount of monthly expenses have cashback or reward creditcards to put the charges on which gives a reasonable period to repay and you pocket the rewards of the card

Aquamania

darcy87 wrote: »

Hi,

I work for the local government, I pay out a couple of hundered per month in travel but have to wait for the next month to have it reinbursed and sometimes this can be up to £500 in mileage per month, Currently I am able to manage to pay this as I have a free overdraft which acts as my buffer, but that will soon be coming to an end.

Are there any savvy ways off getting past this???? So I wont be charged by my bank for the use of an overdraft.

I have considered getting a 0% interest credit card, but I realise I would need to be on top of this all the time as it will be for a time limited period.

Any tips or advice would be great.

Thanks

Ask your employer for a travel advance when you need to travel on business


Edit: This and other helpful tips can be found on the thread you have already posted on the employment board asking the same question.
https://forums.moneysavingexpert.com/discussion/4858935

bouncydog1

If we have to settle expenses prior to reimbursement, my employer issues payment ahead of salary. Woth checking with HR to see if this applies.

Hominu

Same here, if I'm going to be spending £100 or so in a week then the company offers to estimate expenditure and reconcile at the end via receipts. Perfect for longer trips like those to other countries.

For more local mileage I have a choice, I can use a company provided fuel card (ie, they pay for the fuel, no expense for me) or I can pay for it myself. The later always works out better for me as you get paid 45p/mile.

Pugsley_03

I have dealt with mileage claims of up to £500 per month through my work for around 10 years. As someone above mentioned a cashback credit card is a great idea because you get an added reward for your cash outlay.

I'd suggest that if you have this level of money being spent on fuel then maybe consider the Santander 123 account, unfortunately there is a monthly charge for having the account and another annual fee for the credit card after your first year I believe.

However if you have other monthly outgoings the benefit of this account can be huge.

If however you don't fancy paying monthly amounts for having a current account then simply sign up for any other credit card. Your bill will run for the month and will need to be paid at or around the end of the following month. If your not diciplined enough to make the payments then set up a monthly direct debit to pay the card in full.

Then all you need to do is stay on top of your monthly expenses claims, I'd say if it's worth £500 pm to you then you'll make an effort to get your expenses claims in on time.

If you have a high credit rating and you can get a really big credit limit then maybe then consider getting a 0% on purchases card, that way you can stooze, but unless you have a large credit limit you won't reap the rewards with what your having to put on it each month.

scootw1

Wouldnt you only have a problem the first month as after that the expenses claim will cover the next month's mileage?

goldtop

Get a reward or cash back credit card. Pay it off each month and draw the points / cash out at Xmas.

hunsbury0

grumbler wrote: »

Almost all CCs don't charge you any interest on purchases if you pay the balance in full every month, and you have about 20-25 days to pay the balance after the statement is issued.

New Luma 4% cashback card (supermarkets and petrol)

You'll need at least £1000 credit limit to safely spend £500 p.m.

If you need more than 20 days then your only options are either to save £500 to stop getting overdrawn or to get a card with 0% introductory offer on purchases for a limited time.

Some banks/BSs offer a free overdraft to new customers too for a year or so.

IIRC, First Direct offer a permanent £250 interest free overdraft (don't take my word for this).

I cannot see the Luma 4% cashback on petrol/supermarket purchases anymore. Have they withdrawn that offer?