Change of benefits
Discussion
Hi,
I’m currently paid HMRC advisory mileage rates for my private car of 45p/25p a mile.
We’ve now been told that for people doing less than 5k business miles a year it will now go down to 16p a mile.
For those doing more than 5k business miles a year (me), I will be forced to take a fuel card for my private car and I will be reimbursed pro-rata based on my cars actual fuel costs. As I have an efficient car, that will be circa 11p a mile.
2 questions.
As I do circa 15k miles a year, this is a drop of circa £4,100 a year (before I get the tax benefit, £2,460 after tax rebate), can they force this through as that’s a fairly chunky drop in cash?
Secondly, can I legally be treated differently to somebody in the company who is doing less than 5k miles and forced into a fuel card and get a lower mileage rate as I have an efficient car (11p/mile for me vs 20p/mile for others).
Thanks in advance.
I’m currently paid HMRC advisory mileage rates for my private car of 45p/25p a mile.
We’ve now been told that for people doing less than 5k business miles a year it will now go down to 16p a mile.
For those doing more than 5k business miles a year (me), I will be forced to take a fuel card for my private car and I will be reimbursed pro-rata based on my cars actual fuel costs. As I have an efficient car, that will be circa 11p a mile.
2 questions.
As I do circa 15k miles a year, this is a drop of circa £4,100 a year (before I get the tax benefit, £2,460 after tax rebate), can they force this through as that’s a fairly chunky drop in cash?
Secondly, can I legally be treated differently to somebody in the company who is doing less than 5k miles and forced into a fuel card and get a lower mileage rate as I have an efficient car (11p/mile for me vs 20p/mile for others).
Thanks in advance.
AIUI.....
The HMRC rate isn't just for fuel but contributes proportionally to other costs such as wear and tear, depreciation, etc. Whilst it's acceptable for the company to issue fuel cards, from what you've said, it sounds like they are not accommodating these other costs so a discussion on how that will be reimbursed should be had with them. The efficiency of your car doesn't really come into it because you will carry these other costs regardless of whether you run a Prius or a '75 TransAm V8.
The HMRC rate isn't just for fuel but contributes proportionally to other costs such as wear and tear, depreciation, etc. Whilst it's acceptable for the company to issue fuel cards, from what you've said, it sounds like they are not accommodating these other costs so a discussion on how that will be reimbursed should be had with them. The efficiency of your car doesn't really come into it because you will carry these other costs regardless of whether you run a Prius or a '75 TransAm V8.
A900ss said:
Hi,
I’m currently paid HMRC advisory mileage rates for my private car of 45p/25p a mile.
We’ve now been told that for people doing less than 5k business miles a year it will now go down to 16p a mile.
For those doing more than 5k business miles a year (me), I will be forced to take a fuel card for my private car and I will be reimbursed pro-rata based on my cars actual fuel costs. As I have an efficient car, that will be circa 11p a mile.
2 questions.
As I do circa 15k miles a year, this is a drop of circa £4,100 a year (before I get the tax benefit, £2,460 after tax rebate), can they force this through as that’s a fairly chunky drop in cash?
Secondly, can I legally be treated differently to somebody in the company who is doing less than 5k miles and forced into a fuel card and get a lower mileage rate as I have an efficient car (11p/mile for me vs 20p/mile for others).
Thanks in advance.
They can do what they want.I’m currently paid HMRC advisory mileage rates for my private car of 45p/25p a mile.
We’ve now been told that for people doing less than 5k business miles a year it will now go down to 16p a mile.
For those doing more than 5k business miles a year (me), I will be forced to take a fuel card for my private car and I will be reimbursed pro-rata based on my cars actual fuel costs. As I have an efficient car, that will be circa 11p a mile.
2 questions.
As I do circa 15k miles a year, this is a drop of circa £4,100 a year (before I get the tax benefit, £2,460 after tax rebate), can they force this through as that’s a fairly chunky drop in cash?
Secondly, can I legally be treated differently to somebody in the company who is doing less than 5k miles and forced into a fuel card and get a lower mileage rate as I have an efficient car (11p/mile for me vs 20p/mile for others).
Thanks in advance.
You just need to point out to them that your car uses 11p of fuel a mile.
However, if that;s all they'll pay then what happens
Tyre wear
Additional servicing due to increased mileage
Additional depreciation due to increased mileage.
Additional insurance costs due to increased mileage and business use.
If they're not willing to move then request a company vehicle or a rental car
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