Using own car - pence per mile

Kittykattypuss

I use my own car for work purposes and am paid 45p per mile to do so, however this amount has not gone up in 10 years! With the cost of fuel at nearly double what it was 2 years ago, the payment is not going as far to help with maintenance and insurance costs.

Is there any way we can get the tax man to review this?  Is it on the cards already?

DE_612183

45p per mile is still good.

If you are paid by your employer -then they can pay what they like.
If you are talking about tax relief then thats different.

By the way - my car on a full tank ( £80 ) does 400 miles - that's 20p per mile.

MovingForwards

There's a current thread querying the same thing:
https://forums.moneysavingexpert.com/discussion/6340541/mileage-rate-45p-will-it-change/p1

Andy_L

Kittykattypuss said:

I use my own car for work purposes and am paid 45p per mile to do so, however this amount has not gone up in 10 years! With the cost of fuel at nearly double what it was 2 years ago, the payment is not going as far to help with maintenance and insurance costs.

Is there any way we can get the tax man to review this?  Is it on the cards already?

Lobby your MP to change the HMRC limit

although bare in mind that, as said, your employer can pay more (or less) than that, you will just pay/claim back tax on the amount over/under HMRC's limit of 45p.

Sandtree

DE_612183 said:

By the way - my car on a full tank ( £80 ) does 400 miles - that's 20p per mile.

The cost of using your vehicle isn't just the fuel you put in it, its the wear to the tyres and other mechanical aspects, the acceleration towards any periodic servicing, the depreciation of the vehicles value etc. AA used to publish figures and the fuel aspect of it was relatively modest and that was back when cars were less efficient (but fuel was cheaper)

TELLIT01

It's a lot more than 10 years since the figure was reviewed.  That the rate I got back in the early 2000's.

Grumpy_chap

TELLIT01 said:

It's a lot more than 10 years since the figure was reviewed.  That the rate I got back in the early 2000's.

I remember when the 45 pence first came in as the standard for everyone.  Before that it was different rates for different engine sizes - I think it was about 63 pence for some people and the effect was that it encouraged people to buy larger-engined cars.  Then the rate was set flat and everyone swapped to small-engined cars and made a fortune.  It is still perfectly possible to make a profit at the 45 pence rate.

I doubt it is a priority for change.

Kittykattypuss said:

I use my own car for work purposes and am paid 45p per mile to do so, however this amount has not gone up in 10 years! With the cost of fuel at nearly double what it was 2 years ago, the payment is not going as far to help with maintenance and insurance costs.

Is there any way we can get the tax man to review this?  Is it on the cards already?

Alanp

Mines just gone up from 35p to 40p, I only use mine occasionally if I have to buy equipment 

jefaz07

I get 13p per mile and have to claim the rest on my tax return. 

I also get £4500 per annum to buy whatever I choose. 

Undervalued

Sandtree said:

DE_612183 said:

By the way - my car on a full tank ( £80 ) does 400 miles - that's 20p per mile.

The cost of using your vehicle isn't just the fuel you put in it, its the wear to the tyres and other mechanical aspects, the acceleration towards any periodic servicing, the depreciation of the vehicles value etc. AA used to publish figures and the fuel aspect of it was relatively modest and that was back when cars were less efficient (but fuel was cheaper)

Although it is not as simple as that.

If you are a fairly low mileage driver who changes their car regularly (and many do), then doing a thousand or two miles a year for your employer costs you little if anything more that the petrol. Service will be annual, rather than because of the number of miles you have done and you will very likely be changing the car before major components wear out. Insurance (normally) and car tax are not mileage dependent. Depreciation and capital costs are not affected. In that scenario you are collecting nearly 25p per mile "profit" tax free.  

If on the other hand you are driving a well worn car with major items nearing end of life then a couple of thousand extra miles can have a significant effect on your bank balance.

TELLIT01

I wonder what allowances will be given for use of EVs?