Mileage rate

Unicorn_cottage

Hi there

I recently did a gardening job for my client in another part of the country. I travelled 220 miles.

How much would I charge per mile for travel on top of my hourly rate and parking charges?

Thanks

bazzyb

What rate did you agree with your client?

Unicorn_cottage

I didn't. It was a last minute thing. Can you help me with my question?

comeandgo

You can charge what you like but HMRC suggest 45 p a mile.

bazzyb

Unicorn_cottage wrote: »

Can you help me with my question?

I thought I was. You could charge 10p per mile, you could charge £1 per mile... but ultimately I would think it would be something to agree with the client?

Unicorn_cottage

bazzyb wrote: »

I thought I was. You could charge 10p per mile, you could charge £1 per mile... but ultimately I would think it would be something to agree with the client?

Thanks I thought maybe there was a prescribed rate set already by the HMRC.

bazzyb

Unicorn_cottage wrote: »

Thanks I thought maybe there was a prescribed rate set already by the HMRC.

HMRC approved mileage rate is 45ppm for the first 10,000 miles per tax year. But this is primarily for tax purposes and doesn't necessarily relate to what you would charge your clients.

I know of an organisation who charge mileage to clients at a flat rate of 25ppm, and another organisation in a different sector who charge 60p+VAT pm.

Savvy_Sue

comeandgo wrote: »

You can charge what you like but HMRC suggest 45 p a mile.

But that's for claiming mileage when you are employed.

bazzyb wrote: »

HMRC approved mileage rate is 45ppm for the first 10,000 miles per tax year. But this is primarily for tax purposes and doesn't necessarily relate to what you would charge your clients.

As above.

What that means is that if I, as an employee, drive somewhere for work, my employer can reimburse me up to 45p per mile and I won't have to pay any additional tax on it. (NB: a few employers have negotiated a higher tax free mileage allowance but let's not go into that here.)

If my employer reimburses me LESS than 45p per mile, say 40p per mile, then I can reclaim the tax on the difference between 40p and 45p per mile.

As a self-employed person, you can charge whatever you like / whatever your client is willing to pay. For a journey of this kind, you might feel you're entitled to an additional mileage charge, but your client might be surprised by that if you've worked for them elsewhere and NOT charged mileage and NOT discussed it with them beforehand. And equally, charging for a tank of petrol might be a more reasonable claim rather than 45p per mile.

So, whatever you agree on this occasion, I'd get it clear in your terms and conditions: "in addition to my hourly rate, I charge Xp per mile for travel from my home base, and for any parking charges incurred." Or "for journeys more than Y miles from my home base, I charge Xp per mile for travel, and for any parking charges incurred." or agree it on a case by case basis - but do it up front not when it's time to invoice!