Salary Expecation

CKhalvashi

theoretica wrote: »

Businesses may refund up to 45p a mile as mileage costs for using a personal vehicle to cover insurance, fuel and wear and tear for the first 10k and 25p after this. The business/commuting insurance will make a difference, but an interesting take on what the tax man thinks is the cost of going those distances in your own car. £6520.

Not for a commute.

Looking at my tax calculations from the accountant, my car drove 61664 miles last tax year (started at 101547, finished at 163211) of which 38711 were for business use.

My commute is 40 miles each way, so about 20000 a year, leaving about 3000mi for general running DDs around, doing shopping etc (60mi a week sounds about right to me)

My claimed expenses for running the car were £11677.75, business insurance probably cost around £500 extra (youngish driver, powerful car with extra mileage), £5000 in fuel, probably £1000 in servicing, and about £4k a year in depreciation on the buiness use (averaged over 3 years), leaving a total 'profit' of about £1100 last year in using the car for business.

Sorry if OP didn't want a breakdown, but just wanted to show how it's worked out pre/post tax, including the commuting side of things.

dancingfairy

Obviously I don't know your situation but would moving be an option if the commute became too much (obviously this depends on whether you are renting or buying and whether you have a partner of family to consider as well)?
What are the hours at the job like? Are they flexible? Could you start later to avoid the morning rush or start earlier and finish earlier?
Are the hours of the job a lot longer than advertised, for example it may be fine if it's a strict 9 -5.30 job but if you end up working until 7 or later would you want to have a long drive home then?
Could you work from home?
Would you be driving to different sites from there or would you be based there?
What effect would the commute have on your partner/family?
Lots of different things to consider.
df

w00519772

CKhalvashi wrote: »

Not for a commute.

Looking at my tax calculations from the accountant, my car drove 61664 miles last tax year (started at 101547, finished at 163211) of which 38711 were for business use.

My commute is 40 miles each way, so about 20000 a year, leaving about 3000mi for general running DDs around, doing shopping etc (60mi a week sounds about right to me)

My claimed expenses for running the car were £11677.75, business insurance probably cost around £500 extra (youngish driver, powerful car with extra mileage), £5000 in fuel, probably £1000 in servicing, and about £4k a year in depreciation on the buiness use (averaged over 3 years), leaving a total 'profit' of about £1100 last year in using the car for business.

Sorry if OP didn't want a breakdown, but just wanted to show how it's worked out pre/post tax, including the commuting side of things.

I am talking about paying these expenses myself out of my own pocket. I think you are talking about claiming the cost back as expenses and the paying tax and Ni on those expenses?

I don't think this potential employer would pay the commuting costs? I guess I could ask?

CKhalvashi

w00519772 wrote: »

I am talking about paying these expenses myself out of my own pocket. I think you are talking about claiming the cost back as expenses and the paying tax and Ni on those expenses?

I don't think this potential employer would pay the commuting costs? I guess I could ask?

I'm saying that any business use is fully offsettable against tax, and and personal use (including commuting) isn't.

If you're in the position of an additional commute, the best extra salary to ask for is your commuting costs, divided by your tax band, however this will be as salary, not as travel expenses.

If you wish to ask for extra to cover the time, this is your choice, however if you're seen as asking for too much, then there's a good chance you won't get the job.

w00519772

CKhalvashi wrote: »

I'm saying that any business use is fully offsettable against tax, and and personal use (including commuting) isn't.

If you're in the position of an additional commute, the best extra salary to ask for is your commuting costs, divided by your tax band, however this will be as salary, not as travel expenses.

If you wish to ask for extra to cover the time, this is your choice, however if you're seen as asking for too much, then there's a good chance you won't get the job.

Just to clarify. I would only pay tax and Ni if I claimed travel expenses. If I paid for this daily expense out of my own pocket then tax and Ni is irrelevant?

Just for the record I haven't even put an application in yet. I am thinking about it.

CKhalvashi

w00519772 wrote: »

Just to clarify. I would only pay tax and Ni if I claimed travel expenses. If I paid for this daily expense out of my own pocket then tax and Ni is irrelevant?

Just for the record I haven't even put an application in yet. I am thinking about it.

AAAH! Sorry for confusing you! I was originally posting directly for the other poster and most of what I wrote isn't relevant to you.

If you have just a salary, then there's no reclaim and no tax to pay.

Any extra salary (to cover travel expenses for commuting) is taxable at the relevant rate as salary.

If you want to ask for £3390 extra for this (in your calculation), then you will receive £3390 *.8 = £2712, minus national insurance.

At the same time, 20000 miles a year isn't a terrible commute (although I tend to drive at 4am and 3pm, A120, A10, A406 which is a lot better than rush hour on the same roads). As a guide, it takes me under an hour each way. If you're looking at a 2 hour commute, on single track roads in rush hour then I'd hate the commute.

Then completely separately:

Any money paid to cover travel expenses during work time (to/from a clients office etc) is completely separate and can be reimbursed tax-free.