40p a mile expenses. Does this still cut it?
Discussion
Given the all time record price of fuel and tyres seem to be rocketing in price too, does 40p a mile still cover business journeys, as that is all I can claim. I don't have enough data to work it out for myself, but wonder if anyone with an average (say 2.0 petrol car doing about 35mpg) car has worked out current cost per mile?
HellDiver said:
33.7mpg average on my car since I got it, 7007 miles and cost £1086, so it's cost me 15.5p a mile on fuel alone.
By my maths, you'd need to be down to less than 15mpg to cost 40p a mile.
It's not just fuel consumption that it covers, it's also supposed to cover depreciation and wear & tear. I got 35pmp from my last job.By my maths, you'd need to be down to less than 15mpg to cost 40p a mile.
HellDiver said:
33.7mpg average on my car since I got it, 7007 miles and cost £1086, so it's cost me 15.5p a mile on fuel alone.
By my maths, you'd need to be down to less than 15mpg to cost 40p a mile.
The 40p a mile is to cover the full running costs, including fuel, tyres, tax, servicing and insurance (and arguably depreciation) of running your own car for carrying out your employer's business.By my maths, you'd need to be down to less than 15mpg to cost 40p a mile.
So no, it doesn't cut it any more IMO!
If I'm traveling for work I just hire a car now, it saves be putting loads of miles on mine, saves work money so we're both happy.
40p per mile doesn't really cover it my car but if I was diving a more economical car, with cheaper serving I expect it could, just another way the government are trying to force us out of less economical cars i guess.
40p per mile doesn't really cover it my car but if I was diving a more economical car, with cheaper serving I expect it could, just another way the government are trying to force us out of less economical cars i guess.
You guys on 40ppm don't even know you're born!
My employer pays (oh so generously) 25ppm as that way they don't have to keep detailed records of the exact mileage we do. (The 40ppm tax free rate only applies for the first 10,000 miles and after that your employer should pay 25ppm anyway)
I do have the option of claiming relief on my tax for 15ppm on my first 10,000 miles but I wouldn't get the full 15ppm and the paperwork and fuss with the tax office just ain't worth it.
My employer pays (oh so generously) 25ppm as that way they don't have to keep detailed records of the exact mileage we do. (The 40ppm tax free rate only applies for the first 10,000 miles and after that your employer should pay 25ppm anyway)
I do have the option of claiming relief on my tax for 15ppm on my first 10,000 miles but I wouldn't get the full 15ppm and the paperwork and fuss with the tax office just ain't worth it.
The my garage thingy on PH thinks definitely not for either my S3 or M3 however I guess it'd cover it if you had a car that didn't cost a fortune in repairs and servicing even if it only did 30mpg. That would be on the assumption depreciation doesn't kill it. S3 costs miss out insurance which would push it closer to 50p per mile too.
My employer only covers 25p so I'd need to claim back the rest up to 40p which isn't great...
My employer only covers 25p so I'd need to claim back the rest up to 40p which isn't great...
IainZ said:
HellDiver said:
33.7mpg average on my car since I got it, 7007 miles and cost £1086, so it's cost me 15.5p a mile on fuel alone.
By my maths, you'd need to be down to less than 15mpg to cost 40p a mile.
The 40p a mile is to cover the full running costs, including fuel, tyres, tax, servicing and insurance (and arguably depreciation) of running your own car for carrying out your employer's business.By my maths, you'd need to be down to less than 15mpg to cost 40p a mile.
So no, it doesn't cut it any more IMO!
Surely anyone on 40p a mile is an occasional user, and not doing tens of thousands of miles? I know there's a maximum mileage in the civil service for the 40p a mile rate.
HellDiver said:
Surely anyone on 40p a mile is an occasional user, and not doing tens of thousands of miles? I know there's a maximum mileage in the civil service for the 40p a mile rate.
I think it's an inland revenue rate actually, 10,000miles @ 40p then drops to 25p or something similar it should have been reviewed by now in my opinion.Anyone can claim tax relief up to those allowances, I'm sure someone will confirm though.
The point is, someone many years ago worked out that 40ppm was a realistic rate to pay employees for using their own car.
Since that time the cost of petrol, insurance, tax etc. has gone up considerably, yet the 40ppm rate remains.
I can't see any justification for this.
p.s. Does anyone know when the 40ppm rate came in?
Since that time the cost of petrol, insurance, tax etc. has gone up considerably, yet the 40ppm rate remains.
I can't see any justification for this.
p.s. Does anyone know when the 40ppm rate came in?
In the 4¼ years and 52K miles I have owned my 2-litre Civic I kept records of all my motoring expenses and the car currently costs me 32p/mile to run. However, if I ignore the fixed costs (insurance, road tax, yearly service, etc.) the car costs 24p to run. So the 40p/mile I am paid for my voluntary driving does cover the costa I incur.
However, for some-one buying a £20K new car on finance and changing it every 3 years I doubt that 40p/mile would cover the costs involced.
However, for some-one buying a £20K new car on finance and changing it every 3 years I doubt that 40p/mile would cover the costs involced.
Edited by Glosphil on Friday 14th January 17:34
Edited by Glosphil on Friday 14th January 17:36
GPT said:
The point is, someone many years ago worked out that 40ppm was a realistic rate to pay employees for using their own car.
Since that time the cost of petrol, insurance, tax etc. has gone up considerably, yet the 40ppm rate remains.
I can't see any justification for this.
p.s. Does anyone know when the 40ppm rate came in?
I think fuel prices have risen more slowly than average rep-mobile economy.Since that time the cost of petrol, insurance, tax etc. has gone up considerably, yet the 40ppm rate remains.
I can't see any justification for this.
p.s. Does anyone know when the 40ppm rate came in?
40ppm has always been a bit of a perk, anyway.
Edited by kambites on Friday 14th January 17:35
it easily covers it IF you get a car allowance from the company as well.
My example, Omega v6 3 Litre gets an average of 30mpg. Over the last 3 years I have recorded every penny spent (even down to 99p bottle of screenwash!) and I am currently £2500 up on the deal.
Car purchase £4000
Depreciation factored in at £150 per month
Company car allowance £300 per month
25p per business mile for 2 years, now 30p per business mile
Tax rebate from the taxman on the difference between mileage claimed and 40p
average ~25k miles pa
Car serviced bang on schedule, cam belt changed every 40k etc all work done at garage
However, if I take out the company allowance and just use the expenses claim for the mileage I would have lost £5300 over the same period.
So in my case the company car allowance makes enough every year to pay all the running costs for my TVR
My example, Omega v6 3 Litre gets an average of 30mpg. Over the last 3 years I have recorded every penny spent (even down to 99p bottle of screenwash!) and I am currently £2500 up on the deal.
Car purchase £4000
Depreciation factored in at £150 per month
Company car allowance £300 per month
25p per business mile for 2 years, now 30p per business mile
Tax rebate from the taxman on the difference between mileage claimed and 40p
average ~25k miles pa
Car serviced bang on schedule, cam belt changed every 40k etc all work done at garage
However, if I take out the company allowance and just use the expenses claim for the mileage I would have lost £5300 over the same period.
So in my case the company car allowance makes enough every year to pay all the running costs for my TVR
Edited by bigdods on Friday 14th January 17:45
kambites said:
I think a company could reasonably argue that you shouldn't be driving a 35mpg car if you're doing lots of business miles.
I don't think I would take to kindly to my company telling me what car I should be driving! (I don't do lots of business miles, I do see your point)Forums | General Gassing | Top of Page | What's New | My Stuff