petrol allowance

[petemurphy]

Hi,

My employer only pays 30p a mile petrol and its costing me a fortune. Do you have any good arguments, stats etc why it should be increased? isnt the gov recommendation 45 or something?

Thanks

[DaveH23]

You can claim back the difference from HMRC.

https://www.gov.uk/tax-relief-for-employees/vehicl...

[TwigtheWonderkid]

DaveH23 said:

You can claim back the difference from HMRC.

https://www.gov.uk/tax-relief-for-employees/vehicl...

No, you can claim back the tax on the difference. So with a 15p difference, OP can claim 3p or 6p a mile, depending on his tax level.

[petemurphy]

DaveH23 said:

You can claim back the difference from HMRC.

https://www.gov.uk/tax-relief-for-employees/vehicl...

interesting thanks although prob not worth it

[bogie]

petemurphy said:

DaveH23 said:

You can claim back the difference from HMRC.

https://www.gov.uk/tax-relief-for-employees/vehicl...

interesting thanks although prob not worth it

it does not cost anything other than a phonecall or a form to fill out once per year.

If you did 10000 business miles in a year thats an extra £1500 a year on your tax free allowance

I claimed it back every year for 14 years in my previous role, it all adds up....my current employer pays .45p a mile though

[PF62]

petemurphy said:

Hi,

My employer only pays 30p a mile petrol and its costing me a fortune. Do you have any good arguments, stats etc why it should be increased? isnt the gov recommendation 45 or something?

Thanks

If travel time is paid and there is no contractual requirement for you to use your car, then there is always the nuclear option of ceasing to use your car for work and doing those business journeys on the bus and taking far longer to get anywhere.

But I would be looking for other employment before I did it.

[V8 Stang]

I just increase the amount of miles, by adding 25% more miles to the claim.

45P doesn't cut it with a 5.0 V8 and ~£1.58/L.

If they have a problem with it, they can supply me with a fuelled car!

[mikey_b]

V8 Stang said:

I just increase the amount of miles, by adding 25% more miles to the claim.

45P doesn't cut it with a 5.0 V8 and ~£1.58/L.

If they have a problem with it, they can supply me with a fuelled car!

Be careful doing that - if other staff members make the same journeys and consistently claim 25% fewer miles, it will stand out like a sore thumb if anyone starts looking. And at some point, they probably will.

[interstellar]

mikey_b said:

V8 Stang said:

I just increase the amount of miles, by adding 25% more miles to the claim.

45P doesn't cut it with a 5.0 V8 and ~£1.58/L.

If they have a problem with it, they can supply me with a fuelled car!

Be careful doing that - if other staff members make the same journeys and consistently claim 25% fewer miles, it will stand out like a sore thumb if anyone starts looking. And at some point, they probably will.

And when the company is audited this can be spotted.

I sacked someone for doing this from a 60k sales job, not really worth it imo.

[jonwm]

Mine only pay 13p! It's costing me a fortune! I've had a fuel card most of my work life, I'm not sure I worked out the sun's right when I thought moving was a good idea!

[Burwood]

PF62 said:

petemurphy said:

Hi,

My employer only pays 30p a mile petrol and its costing me a fortune. Do you have any good arguments, stats etc why it should be increased? isnt the gov recommendation 45 or something?

Thanks

If travel time is paid and there is no contractual requirement for you to use your car, then there is always the nuclear option of ceasing to use your car for work and doing those business journeys on the bus and taking far longer to get anywhere.

But I would be looking for other employment before I did it.

That is exactly what I would do. Not in a demanding way but tell your boss you're losing money. Guide here which at least gives you the main costs to consider and relevant? Simple to add on fuel costs 4.55L/G X £1.50? per litre divide by avg mpg . I would think a later model car doing 35mpg would cost at least 45p to run and probably more.
https://media.rac.co.uk/blog_posts/typical-vehicle...

[Trailhead]

jonwm said:

Mine only pay 13p! It's costing me a fortune! I've had a fuel card most of my work life, I'm not sure I worked out the sun's right when I thought moving was a good idea!

That’s the advisory fuel rate. Do you have a company car or a car allowance? If you do, then it’s fair.

[markiii]

well its not fair if it doesn't cover the fuel used now is it

[surveyor]

markiii said:

well its not fair if it doesn't cover the fuel used now is it

Quite. I'm in the process of moving from a company vehicle and fuel card to my own car and car allowance.

I'm told the car allowance is meant to cover buying and maintenance and the mileage just the fuel.

At today's fuel prices though, it's been a struggle to get something that will not cost me money in terms of fuel, as it also needs to tow a heavy caravan and house a big dog...

[Welshbeef]

V8 Stang said:

I just increase the amount of miles, by adding 25% more miles to the claim.

45P doesn't cut it with a 5.0 V8 and ~£1.58/L.

If they have a problem with it, they can supply me with a fuelled car!

Expenses fraud - which is what this would be classed as - is instant dismissal (or could be if the company wanted it to be so).

[Welshbeef]

markiii said:

well its not fair if it doesn't cover the fuel used now is it

You have free choice on what car you drive.

You could buy a perfectly good £5k car then cream it on the monthly allowance and who cares about the fuel.

[mikey_b]

Welshbeef said:

You have free choice on what car you drive.

You could buy a perfectly good £5k car then cream it on the monthly allowance and who cares about the fuel.

Very often, you don’t have a free choice. Many companies have restrictions attached to car allowances (maximum age, must have four doors, etc), especially if that car is regularly used to visit customer sites. They justify it by saying the car should present a suitably professional image, but also they don’t want people buying an old nail which regularly breaks down and makes you late to arrive on the customer’s site.

[markiii]

Welshbeef said:

markiii said:

well its not fair if it doesn't cover the fuel used now is it

You have free choice on what car you drive.

You could buy a perfectly good £5k car then cream it on the monthly allowance and who cares about the fuel.

most mileage rates for company supplied cars don't cover the cost of the fuel

[jonwm]

Trailhead said:

jonwm said:

Mine only pay 13p! It's costing me a fortune! I've had a fuel card most of my work life, I'm not sure I worked out the sun's right when I thought moving was a good idea!

That’s the advisory fuel rate. Do you have a company car or a car allowance? If you do, then it’s fair.

Manufacturers scheme so car is "mine" but I pay 2.5% of the loan cost. I guess the same principal as car allowance.

But still don't expect to pay to get to appointments. With the HMRC difference I guess it does but that money I don't see until next year when I do SA and I'm sure it will be tight.
My annoyance is that it costs me £24 of fuel last week to go to an appointment and I get to claim £15 of that, I have a meeting tomorrow with HR with 4 others who are in the same boat to see if there is anything we can do.

When I joined in march the 11p then covered my trips give or take a few pence.

[Welshbeef]

mikey_b said:

Welshbeef said:

You have free choice on what car you drive.

You could buy a perfectly good £5k car then cream it on the monthly allowance and who cares about the fuel.

Very often, you don’t have a free choice. Many companies have restrictions attached to car allowances (maximum age, must have four doors, etc), especially if that car is regularly used to visit customer sites. They justify it by saying the car should present a suitably professional image, but also they don’t want people buying an old nail which regularly breaks down and makes you late to arrive on the customer’s site.

Generally it’s a vehicle that isn’t 2 door and then max age limits ie 3/5/7 years max age at the end of its life.

I’m fortunate where there is no restriction on vehicle.



But for those who do you could easily buy say a Dacia Sandeep £7k new car and run it into the ground.