Devils.Advocate

my company gives me 40p for the 1st 83miles and 25p after that every week

This is tax free care of Inland revenue rules

This should cover Insurance, tax, wear and tear, AND FUEL

These Inland Revenue rates haven't changed for years

I guess at the moment its not even covering my fuel

I was told if I have any more it would be taxable !!!!

Shouldnt the government up these rates

FlightMan

Yes.

Will they? No.

PaulC72

Yes they probably should in line with rising costs, however they won't, just be thankfull it doesn't go down

You are ok to claim 40ppm upto 10k mile and 25ppm thereafter without any tax. I am sure that is how it works, but your 83miles per week is only 4316 on 52week calc....

Devils.Advocate

Cheers Paul

My fault I hit the calculator button wrong 193miles a week @40p

Petem95

My firm paid 40ppm until recently - now its 35ppm for fist 10k miles, then 15ppm

Theyre trying to cut costs due to credit crunch killing profits.

SJ_Skyline

You can claim tax relief on the 5p over the first 10k you have lost. My company pays me 22p for the first 10k, I simply fill out and submit a claim for my annual mileage to IR along with a listing of my business trips and claim the tax relief on the 18p I'm allowed to.

Can't remember the link off the top of my head but this one's been done before on NSR so try the search

GarethE

iTrader: (1)

I get 25p per mile, but then I'm doing around 24,000 business miles per year so I claim the extra 15p per mile for the first 10,000 miles back from the IR. If I was paid any more by the company, I'd be taxed on it

Gareth

SJ_Skyline

This thread : https://www.scoobynet.com/non-scooby...ses-claim.html

Also has a link to the IR claim form in it - post 3 or 4 IIRC

Mitchy260

The 40ppm scheme is more than reasonable IMO

You can fill a TD up for £60 and get 600 miles from it. This works out at 10ppm. Even if your petrol car only manages 300 miles to the £60, thats still only 20ppm in fuel costs.

Even on the 25ppm scheme, this more than covers the fuel.

Yes im aware of the wear and tear costs but do they really add up to the additional 30ppm or 15ppm as above. (if you drove the £60 -600 mile range TD)

I dont think it should be raised at all, many people make quite a bit of profit already with this mileage allowance.

GarethE

iTrader: (1)

FPMSL - as if !! if they're making "quite a bit of profit" they're claiming for mileage they haven't done !! . Insurance, tax, servicing, tyres, and depreciation all add up. All that is included in the rate per mile, not just the fuel. Its fine if you only do a relatively small amount of business mileage, but no good for higher business mileage. Don't forget, most insurance policies are only for social and commuting to work, and not "for use in connection with the policy holders occupation". My insurance is a lot more to cover me for using the car in this way.

I was better off when employees could recover mileage using the exact method (keeping an accurate record of all motoring expenses and mileages and claiming back against the business mileage covered,minus expenses already received). They stopped that one !

Gareth

PaulC72

I do think the IR system is actually supposed to be a not for profit scheme.

Although alot of people do claim for miles they have not actually done, and it is very hard to prove they haven't too.

The only thing you can do is work out how much the day to day running of the car costs you on the basis of a 12 month peior then divide it by the milage you do in a year and see how close to the 40ppm you get.

Petrol @ Xmiles per year
Insurance @ X £ per year / yearly mileage
Tyre @ X miles per tyre

and so on....

GarethE

iTrader: (1)

Exactly, in fact you will be taxed on any amount you recieve above those rates. eg. if you cover 12000 business miles and are paid 40p per mile you will be taxed on the extra 15p per miles for the 2000 miles over the 10,000 threshold.

Its for that reason I'm paid a flat rate 25p and claim it back, otherwise last year I'd have been taxed on 14,000 miles at 15p per mile !!

Gareth

skoobidude

Don't use your car for business miles. Insist on a hire car or share with someone else.
The crap company I worked for when I was in my early 20s made me use my car for buisiness. 100 miles round trip to site and back every day - with occasional stop over to break the weeks up.
One day the oil pi55ed out when I was just arriving to site. Had no choice but to dump the car in a local garage for 4 weeks. Cost a fortune to sort and I always thought if it wasn't for the company making me use the car I would have had more choice of where to have repair work done.
Yes it would still have been off the road when local but at least I'd have been able to negotiate with the garage in person and make any neccessary visits easily

I use mine only when necessary and only local. Anything out of town then the company hires a vehicle which is delivered to my house the night before.

I agree the current rate hasn't changed for years. I'm sure it was 40ppm for first 10k in any year 20 years ago. I guess we were allowed to "profit" back then

Nick

Diesel

I'm sat at a bodyshop getting a quote for a large stone's damage to my car's bonnet. It happened on a business trip - can I claim the £420 estimate to fix back If I'm paid milage? Can I heck! D

Ian E

iTrader: (1)

I agree its about time these rates were increased - they were set in 2002! Employees using own vehicles for work: statutory mileage rates 2002/03 onwards: kinds of vehicle Just checked fuel prices then - "The average price of unleaded petrol in the United Kingdom, 74 pence a litre in June 2002"

At the company I work for we get 40p a mile for the first 10000 miles and then 25p a mile. Some people are getting hire cars after they have done 10000 miles.

Butty

iTrader: (2)

Yup, they easily exceed the IR rates.
Take a look in What Car to see their cost per mileage for all car models and you'll see how the IR underestimate the true motoring costs.

ScoobyDoo555

I get 45ppm flat rate, but it's of little consequence due to my 2.7L biturbo V6

Dan

Diesel

This is where you get smart and switch from Audi to BMW and embrace the 40mpg oil burning torque bonus!!! D

ScoobyWon't

I was talking to a woman who works for the dole office. She was telling me that the dole office will pay 25p a mile travel allowance to anyone travelling to interviews so they actually attend.

I did 250 miles the other day for an interview and have to do the same again for the second interview. Wish someone would pay that for me. Actually, I think I'll go and sign-on on Monday!

fast bloke

I worked for the silly service in 1993/94 and got 59p per mile for every actual mile I covered. We worked out that average running costs for a 1.8 car would be about 30ppm. I was amazing how often you needed to make a 200 mile round trip to reboot a Vax terminal

ScoobyWon't

I think £62 would be great considering that my motor only costs about half of that to do the journey. I'd be quids in

SD

Comparing costs out of what car on a ppm basis isn't exactly a fair comparison, unless you don't do any personal mileage of your own at all. As soon as you do you have to consider that the cost of wear and tear / insurance etc should be partly born by you anyway.

Spyder550

I occaisionally have to do some to business trips to other offices, and claim back the 40PPM we can claim. The rising fuel costs does now make me think sod it you can hire me a car, as the hire depot is only a few hundred yards from home. The last couple of trips in my car though I worked out the shortest route to drive, then a valid but "scenic" one to claim some extra miles on, not much alternative if they don't correct and up the amount you can claim.