Private Car for work

LRL17

I have moved professions from a hands on role to a sales role and have been in this role over 16 months now.

Currently I get 35p per mile for fuel I just wonder what my rights are ?

Am I expected to cover all the extra cost my self .... business insurance , wear and tear on my vehicle and not to mention depreciation of my vehicle?

I feel like I should of brought this up sooner but I was finding my feet in a new industry.

Any advice would be greatly appreciated

lincroft1710

You have no "rights". 35p per mile is a contribution towards your car's running costs, not just a payment for fuel. Ask your employer if they are willing to pay more.

Pennywise

lincroft1710 wrote: »

You have no "rights". 35p per mile is a contribution towards your car's running costs, not just a payment for fuel. Ask your employer if they are willing to pay more.

Depending on the size of engine and fuel type, the "fuel" element per mile is roughly 15p-20p per mile, so you're getting 15p-20p per mile towards running costs etc.

pinkshoes

As others have mentioned, the mileage you received will cover both petrol and wear on the car.

Also, business car insurance is generally no more expensive than the usual insurance.

gingerdad

also you should be able to claim the tax back up to 45p per mile..

if you where claiming just fuel its currently about 11.5p per mile for a diesel

Dazed_and_confused

As the op hasn't provided any details about the number of business miles travelled and is in sales they could just as easily have extra tax to pay on the 35p/mile. As soon as they go over 20k a year they are into a profit position on 35p.

LRL17

I have roughly calculate I should do around 12000 + miles a year

Sarastro

You're not getting 35p / mile for fuel - it covers the entire cost of using your own car.

LRL17

Thank you for the replies I guess the most logical thing to do would be keep the payments to one side to cover any costs that could occur over the year.

Dazed_and_confused

Google P87 claims.

HMRC allow you to claim tax relief on business mileage (at either 45p or 25p/mile) so at a rough estimate of 12,000 miles you will be able to claim a small amount of expenses.

10000 x 45p = 4500.00
2000 x 25p = 500.00
Gross expenses £5000
Less reimbursed by employer £4200 (12000 x 35p)

Expenses claimed £800

This could save you anywhere between £0 and £480 in tax depending on your personal circumstances although for most it will be between £160 and £320.