Leaving Company Car - Advise

[notastranger]

Posting as a newbie as some colleagues and customers frequent PH and will recognise my usual ID.

I am currently looking at changing jobs.
My current job is 90% field based and I cover approx 50k pa, running a 320D Efficient Dynamics company car (pay my own private fuel)

The new job is internal & field based with an estimated 15k pa, the new job does not come with a company car.
Plan to spend around £6k on a diesel estate.
Having been in a company car for many years, it is a long time since I calculated what it costs me per month via my tax, any idea what difference it will make per year (std rate 396L)

What is the going rate that I can expect to get per business mile travelled

No doubt missed some detail but this is quite alien to me.

Thanks

[randlemarcus]

HMRC rate is 45p per mile up to 10000 miles then a lot less after that.

Your company can choose to pay you any amount it wants to. Under the HMRC rate, you can claim back from HMRC in your tax return. Over that, and the excess may attract BIK.

I get around 15ppm.

[Mr serge]

I get 400 per month car allowance and 20 ppm so i have to run a diesel to make a bit of money, if i got a 2 litre petrol it would cost me money to drive it.

[Mr serge]

randlemarcus said:

HMRC rate is 45p per mile up to 10000 miles then a lot less after that.

Your company can choose to pay you any amount it wants to. Under the HMRC rate, you can claim back from HMRC in your tax return. Over that, and the excess may attract BIK.

I get around 15ppm.

also no company pays 45ppm for a regular business driver forget what this guy said the best i have heard is 26 ppm

[randlemarcus]

Mr serge said:

also no company pays 45ppm for a regular business driver forget what this guy said the best i have heard is 26 ppm

Or actually read the words I wrote, and try to understand the meaning.

[elvismiggell]

I get 45ppm because I have no car allowance at work but I still cover quite a lot of miles so it works quite well for me. (I'm still a little surprised work haven't put me in a company car as it costs them very nearly £400pcm which is what they give as a car allowance, I must be right on the cusp.)

Most places I've worked it's been nearer 15-25ppm.

[Deva Link]

elvismiggell said:

I get 45ppm because I have no car allowance at work but I still cover quite a lot of miles so it works quite well for me. (I'm still a little surprised work haven't put me in a company car as it costs them very nearly £400pcm which is what they give as a car allowance, I must be right on the cusp.)

The HMRC 45p/25p rates and no allowance is quite widely used - one advantage is there's no tax or NI for employeee or employer to pay as there is with allowance. Many companies don't want company cars as they're stuck with them if people leave, and there's a fair amount of admin cost in looking after them, insurance etc.

[elvismiggell]

Deva Link said:

The HMRC 45p/25p rates and no allowance is quite widely used - one advantage is there's no tax or NI for employeee or employer to pay as there is with allowance. Many companies don't want company cars as they're stuck with them if people leave, and there's a fair amount of admin cost in looking after them, insurance etc.

Yeah, I'm on a bog standard 45ppm and 25ppm. I just checked and last month I got getting on for £550. But you're right, I can imagine it would cost them over £100 or so in admin and running costs for a company car each month or even just the car allowance.

[Spitfire2]

Mr serge said:

also no company pays 45ppm for a regular business driver forget what this guy said the best i have heard is 26 ppm

Not going to mention my employer but they pay non Company car drivers 45ppm. But discourage use of private cars for business. I'm in a company car and get something like 15ppm iirc. Been a while since I've claimed business miles.

[Andy665]

Anyone who receives less than the IR rates can claim back the difference on their tax return

[Deva Link]

Andy665 said:

Anyone who receives less than the IR rates can claim back the difference on their tax return

...only the tax on the difference, not the whole amount.

[U T]

Mr serge said:

randlemarcus said:

HMRC rate is 45p per mile up to 10000 miles then a lot less after that.

Your company can choose to pay you any amount it wants to. Under the HMRC rate, you can claim back from HMRC in your tax return. Over that, and the excess may attract BIK.

I get around 15ppm.

also no company pays 45ppm for a regular business driver forget what this guy said the best i have heard is 26 ppm

Nonsense. Most companies pay the standard 45p/25p rate to employees using their own vehicle. It's unusual not to.

[Deva Link]

U T said:

Nonsense. Most companies pay the standard 45p/25p rate to employees using their own vehicle. It's unusual not to.

It generally depends if they pay a fixed sum allowance or not. Casual users do usually get the full rate but regular users tend to get a fixed monthly allowance and smaller mileage payment.

[notastranger]

Thanks everyone for the replies.

We are going down the 45ppm route.

[MC Bodge]

Mr serge said:

also no company pays 45ppm for a regular business driver forget what this guy said the best i have heard is 26 ppm

Apart from every company I've ever done work for?


I may soon have the option to benefit from some sort of blue/eco/green motion company car, but I think I'd probably prefer the cash (even if it is marginally less) so that I can run both a used car of my choice(a decent sized estate with reasonable power, good handling, a comfortable ride and without enormous wheels, to replace my Mk3 Mondeo) and a used motorbike, both serviced at home.

[MC Bodge]

The Crack Fox said:

I get 59p a mile. I like this job.

And some say that the public sector pours money away?

[Little Bob]

swerni said:

You are talking out your backside.

Most companies absolutley don't.

Mine does.

[andy-integrale]

Little Bob said:

swerni said:

You are talking out your backside.

Most companies absolutley don't.

Mine does.

If you get a car allowance you dont normally get paid that rate. If you are not eligible for a car or car allowance and use your own car then you might.

[BigBen]

Little Bob said:

swerni said:

You are talking out your backside.

Most companies absolutley don't.

Mine does.

Mine also. I remember being pissed off when the 45p rate was introduced, it was 68p a mile for cars above 2000cc when I first started working for my present employer, coupled with petrol being 70-80p a litre every journey was quite lucrative. Stupid Labour government.