Nimbus

.....business milage rate are you getting?


Having a bit of a disagreement with work over the amount their offering, which does not actually cover the cost of petrol on any journeys I make...

Faire D'Income

I was getting 12p per mile from my company but don't forget that the difference between the contribution from your company and the official Inland Revenue rates can be reclaimed on your self assessment.

So....

IR rates for the first 10,000 miles = 40p.

IR rate for subsequent mileage = 25p.

Therefore, you subtract your company contribution from the above and take 40% from that as the amount you can reclaim.

MattW

11p

In a feckin Evo !!!

chiark

I'm on 12p too, and do the tax reclamation as I did 15k miles last year. As Faire D'income says, it's an easy calculation - especially as my company's expense system is electronic,and you can download an excel spreadsheet showing mileage, what you were paid and the reason you gave for each journey!

It's a nice little bonus when tax comes back to you

Cheers,
Nick.

MattOz

Nimbus,

I get an allowance and then 23p per mile for the first 12k miles and 12p per mile for everyone after that. I claim back approx £800 from the IR each year. My 330d costs about 7-10p per mile in diesel depending on the "type" of mileage I'm doing.

Matt

Nimbus

riiiiight....

They are offering 14p per mile. So, for example, I claim 5000 miles from the company (5000 x 14p = £700) then I can claim 5000 x 26p (£1300) from the IR?

Faire D'Income

You can claim 40% of that which relates to your tax band, so it would be £520.00.

carl

No, you can claim the tax back on 5000x26p. Otherwise all companies would offer 1p per mile and expect you to claim the rest off the IR.

The IR mileage rates are for paying employees who use their own car for work. They're to cover insurance, depreciation, servicing, etc. To expect a car allowance and the IR mileage allowance is a bit much, IMHO. The car allowance is supposed to pay for the car and the fixed costs of running it, so 12p a mile for the petrol seems reasonable to me.

The fact that you have chosen to run an Evo with your car allowance isn't the company's problem. Had you chosen something more sensible, the mileage allowance would have been adequate. Yer pays yer money, and yer takes yer choice. I ran an Impreza for 3 years on mileage allowances which didn't come close to covering the cost of it. But it was my decision -- I could have run an old nail of a car and made a profit instead.

Nimbus

I'll dig into the the IR website a bit (was hoping to avoid this)...

The reason I'm not happy now is that I used to get a car allowance and a company fule card for business and private milage. They've removed the fule card to make it the same for everyone (although this was part of a seperate agreement when they moved offices and was part of my re-location package). They said this was not being done as a cost saving exercise (yer, right..).

chiark

Wasn't there a "complex" calculation that took into account car loan interest, maintenance and insurance etc? Can't find anything about that...

Anyhow, here's a leaflet on using your own car for work:
http://www.inlandrevenue.gov.uk/pdfs/ir124.pdf

Cheers,
Nick.

carl

Well they will have taken an average of the fuel costs and applied that as the rate. Some people will have won -- you've obviously lost.

Even if they applied different rates to different-sized engine cars (e.g. 10p up to 1400cc, 12p 1401-2000cc, 15p for >2000cc) you still get stuffed if you have a rally turbo-nutter b4stard car as they've generally <2 litres. In the days when the IR rates were related to engine size, I did wonder about getting the Scoob bored or stroked.

Nimbus

carl,

I know the've tried to take an average and apply it to everyone (and belive me, there are no winners here, other than the company). I just want to get the best deal I can.

Faire D'Income

Carl, you can only claim back the difference between your allowance and the IR rates at whatever tax band you're on. If you try inputting the figures on the online Self Assessment it does the calculation for you and in my case the figure is 40% of the difference.

The reason companies give a "reasonable" fuel allowance is purely one of decency - you can't expect your employees to fund business travel for twelve months until they can claim it back from the IR.

But that was the whole point of people opting out of company car schemes. I get an allowance from my company to pay for the car, including insurance, servicing etc plus a mileage allowance to cover fuel costs. I avoid company car tax plus I get to run a car that I want to drive and the company doesn't have the hassle of running a huge fleet of cars. Seems perfectly reasonable to me.

Nimbus

Faire,

Exactly...

carl

That's what I'm saying. IR figures are 40p per mile for the first 10k -- you get 14p per mile. Difference is 26p. You can claim back the tax on that 26p per mile, which is either 23% or 40% depending on your circumstances.

Faire D'Income

Sorry, you appeared to be contradicting me in your earlier post.

Nimbus

Thanks chaps... this makes it clear now..

JackClark

10p a mile. It's not worth my time claiming it.

^Qwerty^

I get 12ppm. Keeping a spread sheet with journey details. I've done 3158 miles so far this year - all in my £500 astra, so me works out that so far I can claim £953.40 back from the tax man next year

speedking

13.5p

916Duke

I get 58p / mile for the first 3000 then, I think, it's about 28p / mile after that.... don't usually exceed the 3000 miles though....

carl

In which case the excess over the IR-approved figures (40p per mile for the first 10k miles, 25p thereafter) is a taxable benefit.

BTW the IR allows you an additional 5p per mile if you have a passenger who is also on business, for example if two of you from the same office go in your car to a meeting.

RichWalk

I would recommend you get 55.020 pence per mile

Nimbus

carl,

I didn't know that... About 600 miles so far has been with a someone else from work.

Faire D'Income

Carl. Have you ever tried to claim this? Do you need proof or is it a case of keeping records on the off chance that they request them?

916Duke

I knew it was a taxable benefit, but I didn't know about the additional 5p allowance either. Approx half my travelling is done with another colleague in the car... Will raise the question with the payroll dept. Thanks.

carl

I claim this all the time (I run an IT consultancy). I keep a mileage record book detailing my journeys and indicating which were with a passenger (e.g. colleague). I also keep all my fuel receipts. So if the IR want to do an audit, I have documented evidence of all my travels.

When I do the expenses runs, I pay mileage at the IR approved rates and add on 5p for those journerys that involved passengers. None of this gets declared on the P11D or in the SA return, because FPCS (or whatever it's called now) mileage payments are exempt.

I found out about the 5p from the IR themselves! As my company is registered for PAYE, we get a pamphlet from the IR about once a quarter -- "Employers' Bulletin" I think it's called -- and the 5p passenger allowance was in there. Needless to say, I started claiming it from then onwards, when appropriate.

*Sonic*

I did mine last week

Was a doddle, I get 12.5p a mile from the company, I did about 15k business miles, so I calculated the 12.5 x 15,000, then did the same for 10k @ 40p, and 5k @ 25p

put both the totals in the relevant boxes, and 1700 quid is on its way to me as I type

Trashman

18p - but they never let me out these days


Chiark - the depreciation calculation no longer applies (from April '03 IIRC)