How to calculate cost of commute to a single place of work?

Mercdriver

Remember to check that your insurance policy includes commuting or better still business use, if it turns out that your boss asks you to call in to anywhere else, like your old workplace. Many people have come a cropper on this assuming that standard S D and P covers commuting. It doesn't usually increase your premiums by much unless it is a job that carries enhanced risk, like carry valuable items or important people, or so called important people ie celebs.

If you don't have commuting or business use and you get stopped, it is a strict liability offence carries a 6 point £300 fixed penalty and can make holiday hires impossible as hire companies do not like insurance endorsements.

Personally I would ask them for the mileage x 0.45p per mile, and see what they say. Your insurance will be being used for getting to work purposes which it wasn't previously, so it is an included cost.

unforeseen

If you claim mileage from your employer then you need business cover even if its commuting. HMRC will probably jump on being paid mileage for commuting

If they just give you an additional fixed £x per week extra to cover additional costs then you don't but that will be taxed as part of your normal pay

neilmcl

unforeseen wrote: »

If you claim mileage from your employer then you need business cover even if its commuting. HMRC will probably jump on being paid mileage for commuting

If they just give you an additional fixed £x per week extra to cover additional costs then you don't but that will be taxed as part of your normal pay

No you don't, not if he's simply driving to a single place of work.

OP, the standard rate of £0.45 is a reasonable starting point, the HMRC figure is supposed to take into account the full cost of motoring eg. fuel, depreciation, wear & tear etc.

Sea_Shell

Even if they offer you less and the 45ppm, you're still really lucky to be offered anything for relatively short distance move.

Most companies just take the stance that your commute is your problem, even if they've caused it, because from what I understand, the workplace has to move a substantial distance before you're entitled to any compensation/redundancy.

DUTR

Sea_Shell wrote: »

Even if they offer you less and the 45ppm, you're still really lucky to be offered anything for relatively short distance move.

Most companies just take the stance that your commute is your problem, even if they've caused it, because from what I understand, the workplace has to move a substantial distance before you're entitled to any compensation/redundancy.

Probably some but not most .

BananaRepublic

lopsyfa wrote: »

That will be commiting tax fraud. For more information:
https://www.gov.uk/expenses-and-benefits-business-travel-mileage/rules-for-tax

Thanks, I missed that, then just claim 45 pence a mile. :A

user1168934

Thanks very much guys for all your replies. I don't know at the moment how it is all going to work (claim after use or fixed amount or something else). I think I will stick with the normal 45p for now and deal with the tax or insurance implications later.

Sea_Shell wrote: »

Even if they offer you less and the 45ppm, you're still really lucky to be offered anything for relatively short distance move.

Well, they have not offered anything at all yet. All they have said is that everyone come up with a number and then there will be a discussion.
Hopefully, they will offer something. Driving costs are one thing, for me the increased childcare costs due to increased commute time is the real killer - let's see.

AdrianC

12 miles each way? You should be thankful you've had such an unusually short commute until now.

FWIW, I think they're being very generous in offering anything. Asking for 45p/mile (for what period? Indefinitely...?) is a definite mickey-take. Over an 8hr work day, it's equivalent to a £1.35/hr pay rise.

Andy_L

lopsyfa wrote: »

That will be commiting tax fraud. For more information:
https://www.gov.uk/expenses-and-benefits-business-travel-mileage/rules-for-tax

Why? Tax is still going to be paid on the grossed up allowances

Takmon

user1168934 wrote: »

Thanks very much guys for all your replies. I don't know at the moment how it is all going to work (claim after use or fixed amount or something else). I think I will stick with the normal 45p for now and deal with the tax or insurance implications later.

Well, they have not offered anything at all yet. All they have said is that everyone come up with a number and then there will be a discussion.
Hopefully, they will offer something. Driving costs are one thing, for me the increased childcare costs due to increased commute time is the real killer - let's see.

I really think you should work it out based on how much your car costs. Your going to be making a big profit if you get 45p per mile and if you take the time to work out exactly how much your car will cost then they are more likely to accept it because your being reasonable.

As a comparison my car which does on average 38mpg and including all the servicing and maintenance works out at 26p per mile using expensive premium fuel. So going in with a cost of 45p per mile they may think your trying your luck.