Company mileage with private car

[Oliver Hardy]

I have been offered some work but need to use my own car to get to sites, allowance is 45p for the first 100 miles 25p after that. THe 45p rate seems OKish, but 25p seems rather low, car does about 42 - 45 MPG, 25p will just about cover fuel, won't it?.

So wondering if this is about right or do people get more/less?

Did a search before posting this, could not find a post on the subject.

[phumy]

It should be 45p per mile for the first 10,000 miles

[Phunk]

It’s up to the companies discretion what they pay, I believe you can claim the difference in tax from HMRC up to 45p.

A previous company I worked for only paid a flat rate of 25p/mile, current FTSE50 company pays 35p/mile

[Eric Mc]

Don't muddle up two things.

The employer's mileage rate policy is one thing.
The tax free mileage rates allowed by HMRC are another.

[snuffy]

Phunk said:

It’s up to the companies discretion what they pay, I believe you can claim the difference in tax from HMRC up to 45p.

A previous company I worked for only paid a flat rate of 25p/mile, current FTSE50 company pays 35p/mile

The company I work for pays something like that. 45p is piss poor and has not gone up in years, anything less is taking the piss. I'm sure they do it to actively discourage you using your own car.

Tell them you want a hire car instead.

[Eric Mc]

45p is the maximum an employer can pay to the employee without the employee suffering Income Tax under the PAYE Benefit in Kind rules. That's why most employers will not pay more than that.

After 10,000 miles, the allowable rate drops to just 25p per mile.

[snuffy]

That's what I mean. 45p being the tax free rate, but HMRC have not shifted it in years. I can remember it used to be 40p and that was over 20 years ago. It's as it, in their world, motoring costs have not changed for years.

[Phunk]

snuffy said:

Phunk said:

It’s up to the companies discretion what they pay, I believe you can claim the difference in tax from HMRC up to 45p.

A previous company I worked for only paid a flat rate of 25p/mile, current FTSE50 company pays 35p/mile

The company I work for pays something like that. 45p is piss poor and has not gone up in years, anything less is taking the piss. I'm sure they do it to actively discourage you using your own car.

Tell them you want a hire car instead.

They’ll happily offer me a hire car instead, I've done my sums and I'm still quids in at 35p a mile. They’ve just announced today that it's going up to 45p/mile too

[snuffy]

Phunk said:

They’ll happily offer me a hire car instead, I've done my sums and I'm still quids in at 35p a mile. They’ve just announced today that it's going up to 45p/mile too

That's fairenoughski then.

Just make sure your car insurance covers you. You need class 1 business insurance, which is to cover you for client visits etc, as opposed to just driving to your normal place of work.

Having said that, I added it to mine a few years ago and it was an extra £5 on a £700 policy.

[Granadier]

Oliver Hardy said:

I have been offered some work but need to use my own car to get to sites, allowance is 45p for the first 100 miles 25p after that. THe 45p rate seems OKish, but 25p seems rather low, car does about 42 - 45 MPG, 25p will just about cover fuel, won't it?.

So wondering if this is about right or do people get more/less?

Did a search before posting this, could not find a post on the subject.

42mpg is impressive if it's that Ford Model T I've seen you driving in the films

[Oliver Hardy]

anonymous said:

[redacted]

Yep I was confused, they pay 22p after the first 30 miles!

Phunk said:

snuffy said:

Phunk said:

It’s up to the companies discretion what they pay, I believe you can claim the difference in tax from HMRC up to 45p.

A previous company I worked for only paid a flat rate of 25p/mile, current FTSE50 company pays 35p/mile

The company I work for pays something like that. 45p is piss poor and has not gone up in years, anything less is taking the piss. I'm sure they do it to actively discourage you using your own car.

Tell them you want a hire car instead.

They’ll happily offer me a hire car instead, I've done my sums and I'm still quids in at 35p a mile. They’ve just announced today that it's going up to 45p/mile too

HOw are you quids in at 35p?

There is the fuel, extra maintenance, increased depreciation, tyres, increased insurance!

Just to add at current prices it costs 20p per mile just in fuel in my car on lng journey.

Edited by Oliver Hardy on Sunday 27th November 00:26

[Phunk]

Oliver Hardy said:

anonymous said:

[redacted]

Yep I was confused, they pay 22p after the first 30 miles!

Phunk said:

snuffy said:

Phunk said:

It’s up to the companies discretion what they pay, I believe you can claim the difference in tax from HMRC up to 45p.

A previous company I worked for only paid a flat rate of 25p/mile, current FTSE50 company pays 35p/mile

The company I work for pays something like that. 45p is piss poor and has not gone up in years, anything less is taking the piss. I'm sure they do it to actively discourage you using your own car.

Tell them you want a hire car instead.

They’ll happily offer me a hire car instead, I've done my sums and I'm still quids in at 35p a mile. They’ve just announced today that it's going up to 45p/mile too

HOw are you quids in at 35p?

There is the fuel, extra maintenance, increased depreciation, tyres, increased insurance!

Just to add at current prices it costs 20p per mile just in fuel in my car on lng journey.

Edited by Oliver Hardy on Sunday 27th November 00:26

I’m a tight Scotsman that drives an older high mileage hybrid which no longer depreciates and I service myself. If I’m feeling especially tight I’ll borrow my wife’s Nissan Leaf where I still get the same mileage rate.

I agree that for most normal/sane folk the numbers don’t really stack up!

[Blown2CV]

if you're not a self assessment taxpayer then you can submit a P87 form to claim the shortfall between the employer's policy and the HMRC acceptable amount. If you are SA then you can do it through there.

[Scrump]

Blown2CV said:

if you're not a self assessment taxpayer then you can submit a P87 form to claim the shortfall between the employer's policy and the HMRC acceptable amount. If you are SA then you can do it through there.

You can claim the tax on the difference between the two amounts, your post reads to me like you can claim the full amount of the shortfall.

[Blown2CV]

Scrump said:

Blown2CV said:

if you're not a self assessment taxpayer then you can submit a P87 form to claim the shortfall between the employer's policy and the HMRC acceptable amount. If you are SA then you can do it through there.

You can claim the tax on the difference between the two amounts, your post reads to me like you can claim the full amount of the shortfall.

ok claim is the wrong word. You can offset it as an allowance against your tax burden.