David Lock

I am out of touch with current business mileage rates. So is 31.4 p per mile reasonable? This offered to my son by local council to travel around the County doing part time teaching so it will be quite a few miles per week. What is typical going rate? I also need to find him a smallish motor, a cheap to run diesel hatchback I expect, so I wonder if this rate will cover actual costs?

He currently drives a 205 1.9 turbo diesel that has been fantastic but now needs replacing; what should we be considering? Budget £1500 max. dl

Cocker

iTrader: (3)

HMRC recommends 40p per mile for the first 10,000 miles which most companies pay as anything over is liable to Income tax

Anything under that, if you do a tax return you can claim the extra to bump it upto 40p

Hanley

Someone may correct me if I'm wrong but the rate is 40p per mile for the first 10,000 miles and 25p thereafter.

If his employer pays him 31.4p then he can claim back 8.6p per mile from the government to make it up to 40p.

Reffro

Sorry to hear the 205 is going, I guess its earned its money though.......

The rate is OK, will the rate change if he does over 10k miles in a year. Buy cheaply and wisely and 31.4p will cover the running cost handsomely, plus as it doesn't match the 40p per mile the government deems reasonable he can claim money back against his tax too. Someone on here will know more about that than me though.

sti-04!!

I am 40p a mile for mines, anything over a 2500cc petrol or diesel get this with my company.

carl

Wrong I'm afraid. If the employer pays 31.4 he can claim back the tax on the remaining 8.6p per mile. Otherwise all employers would pay 1p per mile and rely on your claiming the other 39p from the government.

Matteeboy

45p per mile if sharing a trip with someone.

David Lock

Hi R

It's getting a bit eccentric now but has earned its keep. On a 150k miles now I think.

Thanks to all for comments btw. My son's not into tax returns yet but I have told him this will be one of the pleasures of growing up!! dl

carl

You don't actually need to complete a tax return. Just phone up the Revenue and ask for a form, or post your mileage records to them with a covering letter.

rallying1

I work for Local Authority and as an essential user I get £88 lump sum PCM and 44p per mile

rossyboy

iTrader: (8)

53.0p per mile here over 1500cc and has been for about 5 years

Someone wasn't thinking straight when they agreed to that!

Hanley

I stand corrected