Please sign - petition to increase mileage rate cap.

Andy_L

stamford wrote: »

Can you kindly provide us with the same set of AA figures from 10 years ago ?

1998's the furthest they go back

http://www.theaa.com/staticdocs/pdf/allaboutcars/fuel/petrol1998.pdf

Unfortunately they're based on engine capacity then rather than price, but we could assume the 5 columns are broadly comparable as engine size generally increases in line with price.

Andy_L

Nuclear_Tom wrote: »

Errr, that table shows running costs for my car at 96p/mile based on doing 5000 business miles.

I'm guessing that's a spot of keyboard faff & you meant 69p?

At only 5k miles I suspect you had a car already rather than buying one just for work. So you've taken the fixed cost hit for Insurance/Tax/Depreciation so should only really be costing the cost of the extra miles which is just under 18p

daveyjp

Andy it's 5,000 BUSINESS MILES, not total mileage. I do a similar amount which is 30% of my annual mileage. At three years old my car has done 45,000 miles when all price guides use 10,000 miles as an average, therefore I need business mileage to recompense me for this extra depreciation. It will also need servicing 3 times in this mileage, rather than 2, so that's more cost as a result of the business miles. I also need business cover insurance which is about £50 a year extra. It should all be covered by the business mileage rate.

dzug

I think you are on a loser - the allowance was reduced 10 years ago because it was before then a gross overestimate of the costs of running a car. Even now as AndyL says many cars come under the current limit on the AA figures. Those that come above (larger ones presumably) the government is trying to reduce the use of.
The cost of petrol is a bit of a red herring - as a proportion of the overall costs of running a car it's not that large - a quarter maybe?. (a wild guess...)

You (or rather the government's civil servants) are going to have to produce figure that show the costs of running a modest car are more than the allowance cap. I think you/they'd be hard put to do that even now.

Conor_3

Nuclear_Tom wrote: »

Errr, that table shows running costs for my car at 96p/mile based on doing 5000 business miles.

Err, not exactly. It's a poorly explained table. What the table shows is the annual costs for "time based" things such as tax, insurance etc..

If you work out it takes you 166hrs to do 5000 miles, based on 30MPH average, and then work out what the insurance, tax and MOT costs for that 166hrs, you'll get the true costs for "time based" expenses for the business use.

At the end of the day, mileage rates are there to compensate you for using your own personal car for business use, not to pay your insurance, tax and depreciation (other than that caused by the additional mileage) for the year if you only do 166 hrs (or just over 1 week) actual business travel.

Andy_L

daveyjp wrote: »

Andy it's 5,000 BUSINESS MILES, not total mileage. I do a similar amount which is 30% of my annual mileage. At three years old my car has done 45,000 miles when all price guides use 10,000 miles as an average, therefore I need business mileage to recompense me for this extra depreciation. It will also need servicing 3 times in this mileage, rather than 2, so that's more cost as a result of the business miles. I also need business cover insurance which is about £50 a year extra. It should all be covered by the business mileage rate.

so £2k/year (40p for 5000miles) doesn't cover these extra costs?

Conor_3

Apparently not. Some people are either too greedy or seem to think that business mileage should pay for not only the business mileage but personal use and all the depreciation - stuff every normal motorist has to fork out.

Andy_L

Conor wrote: »

should pay for not only the business mileage but personal use and all the depreciation - stuff every normal motorist has to fork out.

No, as DavyJP says, it should cover the depreciation for the extra business miles & any extra insurance costs.

Now I'm back in the office I've got a copy of Parker's floating about. A 3 y/o 1.8l Mondeo "rep-mobile" loses 4p/mile over the 30000 average mileage. A 1.4 supermini about half that.

Conor_3

BUT IT DOES. If you have any extra insurance costs for Class A business use, you need to change your insurer as I've not had a single one who has charged me or given me anything other than unlimited business mileage but I'll continue...

So..your figures..1.8 Mondy, 35MPG average,

Everybody has to tax a car so can't claim that.
Everybody has to insure a car and most insurers give Class A business use for free.
You can only claim depreciation for the fall in value the extra mileage adds although for the sake of simplicity, I'll go with your 4ppm figure.

4p per mile for depreciation.
13p per mile for fuel (at £1.02 per litre, 35MPG)
2p per mile for tyre wear (£400 for 4 tyres, 20,000 miles lifetime)
0.006p per mile for servicing. (£79 Interim service, 12500 mile service interval)

= 19.006p per mile.

Even if you say add £50 for the business mileage and only do 5000 miles per year on business, it still only adds 10p per mile for insurance, giving you a cost per mile of 29.006p

FOR MY CAR. (2L Mondeo TDCi 130)

4p per mile depreciation.
9p per mile for fuel
1.5p per mile for tyres
0.006p per mile for servicing.
0.00 for additional insurance

=14.506p per mile.


So tell me again why 40p per mile isn't enough?

Hagar_uk

Conor wrote: »

Apparently not. Some people are either too greedy or seem to think that business mileage should pay for not only the business mileage but personal use and all the depreciation - stuff every normal motorist has to fork out.

We are not greedy, its a legit expense. When we work we should not expect to subsidies our employer with providing free cars for their use.

I use to use my car a lot of business, its not just cost of petrol. its servicing and buying the car in the firstplace. Its no fun going to the garage for a service and coming out with bills for a £1000 when post of the miles you have done since the last service was due to business miles, nor is it fun to have to buy a new car much sooner than expected due to total business miles having worn your car down.