Company Car Mileage Rates

AdrianHi

chipsdog wrote: »

My husband gets a car allowance of £400 per month, any business miles are then claimed at 14p per mile, someone, has told him he can claim from the Tax man the difference between the 14p and 41p (Government rate), does anyone know what form needs to be used? can it be backdated?

many thanks

It is 40p per mile first 10,000 miles, 25p after that.
Here is the form you need to fill out for year end April 2008.
http://www.hmrc.gov.uk/forms/p87.pdf
Policy on claiming for previous years, search down the page for title Form P87
http://www.hmrc.gov.uk/manuals/pommanual/PAYE12035.htm
Best bet is to call your local tax office for advice on how far back you can claim this and for the right form. You will need to produce the old expenses claims records to prove your claim.

My wife is in the same situation, I keep nagging her to do it ....

leehal

My rate has just been reviewed and jumped a massive 0.5p to 11p

Not happy at all !

jstallan

leehal wrote: »

My rate has just been reviewed and jumped a massive 0.5p to 11p

Not happy at all !

what are the options for running your own car and accepting a monthly allowance ?

Up until March 2007 I had a taken the company car option at work for the previous 10 years. Then I opted out, purchase myself a car and although I still only get 12p per mile for business miles, I have submitted a p87 claim for the difference. I only wish I had taken this approach years ago (but that's a different story!). Furthermore, I feel that because it's my own car I'm using I try , wherever possible, to limit my journeys or use alternative transport (fully re-imbursed) - hopefully doing my bit for the environment.

leehal

jstallan wrote: »

what are the options for running your own car and accepting a monthly allowance ?

Up until March 2007 I had a taken the company car option at work for the previous 10 years. Then I opted out, purchase myself a car and although I still only get 12p per mile for business miles, I have submitted a p87 claim for the difference. I only wish I had taken this approach years ago (but that's a different story!). Furthermore, I feel that because it's my own car I'm using I try , wherever possible, to limit my journeys or use alternative transport (fully re-imbursed) - hopefully doing my bit for the environment.

I too went down the route of P87, this has now been changed and I complete self assessment.

I receive a car allowance which has been increased over the years by inflationary rises.

My main gripe is that the first milege rate increase for 4 years is only 0.5p per mile. Purely to cover the cost of diesel at the current rates I need to be achieving around 50ish MPG.

To make things worse the company insists I purchase a larger car to tie in with my position within the company. The mileage rates used to be staggered to reflect the fuel economy of smaller cars, now all of the rates are the same.

I therefore HAVE to buy a less economical car, but receive the same back as someone driving round in something like a Polo Bluemotion.

The effects on my mileage claim last month meant an extra £6 for me, one of my trainees who drives a Fiesta received a whopping £40 extra in the month (the rate having increased from 8p to 11p).

jstallan

What would the figures be if you opted for LPG or a Hybrid car ?

AdrianHi

jstallan wrote: »

What would the figures be if you opted for LPG or a Hybrid car ?

As far as HMRC allowances are concerned all cars are the same.
20p per mile for business miles on a bicycle though.