Help Surrounding business mileage rates

SpookyNerd

https://forums.moneysavingexpert.com/discussion/comment/81962735#Comment_81962735

Thats a bold assumption,

We have been refused increased mileage per mile based on the company stating that they have to stick to the 18p per mile.

A more accurate amount per mile would be 24p which is more in line with the current fuel prices.

silvercar

I’ve also worked for companies where the rate the company will per for business mileage is the same whether you have a company car or whether you choose to take the mileage allowance. The only people who received higher rates were those not eligible for a company car or allowance.

IOWJJBTM2025

A thing to remember is that the rates given by HMRC are advisory and if used are not usually challenged by them for claims if ever audited. As said previously they are generated using assumptions. The current applicable rates were issued on 23rd Feb and came into force on 1st March. They are not due to be updated until 1st June and the prices used of 600.1p per gallon for Petrol (£1.32 per Litre) and 642.2p per gallon for Diesel (£1.41 per Litre) are not realistic with the current prices on the forecourt.

In the HMRC guidance it does state that "If you pay rates that are higher than the advisory rates but cannot show that the fuel cost per mile is higher it is taxable…. Therefore if you can show (evidence) that the cost per mile is higher there is no taxable benefit.

Why should you go to work and have to subsidise a company to pay towards fuel for business travel - fuel prices have gone up and the advisory rates are out of date. Remember that when people are travelling for business it is not always possible to spend time looking for cheap Supermarket fuel and you end up having to fill up for convenience at more expensive Motorway Service stations.

Imagine getting low on fuel and getting your phone out while driving to look for Supermarkets near the Motorway to get cheaper fuel. Also would the company be happy if you was trying to claim an extra 30 miles mileage allowance for a diversion to get cheaper fuel. Not sure if HMRC would be happy with this as you are only supposed to claim the direct route from A to B - any deviation could be considered as personal mileage which is taxable.

Just had a look at Motorway Fuel prices today - M6 Todhill services is £197.9p per litre (£9.00 per gallon) M61 Rivington Services are currently 203.9p per litre for Diesel / £9.27 per gallon. HMRC do not expect staff to contribute out of there own pocket to companies towards travel costs.

Get receipts to show fuel costs and evidence the MPG (Photos of Mileage when filling up) If you can evidence the actual cost then HMRC will not treat as taxable. Hopefully your boss is more understanding than @grumpy_chap 😉

Grumpy_chap

https://forums.moneysavingexpert.com/discussion/comment/81963442#Comment_81963442

Many (most) employers will simply follow the AFR rates. Deviations are subject to a great deal of business risk.

Remember, the AFR works with some time-lag. Calculated in February for the period March, April, May. Calculated in May for the period June, July, August. When fuel prices stabilise / fall back to more normal values you might find a calculated rate higher than the actual cost.

Aiming for 24 pence per mile just for fuel costs is disproportionate from the 45 / 25 pence per mile to cover the full cost of running a car including the fuel. Remember, that AMAP has not changed for decades and all the fuel costs changes over that time are absorbed in the rate without the rate changing.

Isthisforreal99

https://forums.moneysavingexpert.com/discussion/comment/81963793#Comment_81963793

I don't think HMRC care one way or another whether staff subsidise their employers costs and to say "HMRC do not expect" is innacurate - it is not their concern.

Seen plenty employees subsidise various what should be employers costs but it's a case for many that "the door is over there if you don't like it".

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81963793#Comment_81963793

I spent decades driving around the UK and only ever filled up at a Motorway service station if I had to, and even then not a full tank. As I could claim back the business miles at the HMRC advisory rates, and personal miles I paid myself, so it was worthwhile shopping around ( this is an MSE forum).

I would not go specifically looking for supermarket filling stations though- normal filling stations are still a lot cheaper than at the service station.

Also if the advisory rates go up and then fuel prices drop, the employees would not be very happy if the employer then reduced the rate.