charge per mile

[Mirinjawbro]

Hello.

currently in the process of returning an unfit bought car.

how much roughly would i expect to see knocked off per mile when giving it back

the car has done around 8k miles since feb this year.

thanks

[Canon_Fodder]

10ppm I would say is fair.

[Save Ferris]

Mirinjawbro said:

Hello.

currently in the process of returning an unfit bought car.

how much roughly would i expect to see knocked off per mile when giving it back

the car has done around 8k miles since feb this year.

thanks

Dealers will have different opinions on this, the maximum the guidelines suggest is 45p from what I’ve seen, others go nearer to 25p.

[ZX10R NIN]

As above between 30ppm-45ppm is the number.

[Mirinjawbro]

thanks all. will update when i know

[Trevor555]

Save Ferris said:

Dealers will have different opinions on this, the maximum the guidelines suggest is 45p from what I’ve seen, others go nearer to 25p.

Could you post up those guidelines for us all to see please.

And do they differ when the price paid for the car is taken into account?

If car was only 2/3 grand they must be lower?

[Pica-Pica]

The maximum mileage payment that is tax-free is 45p per mile, at least that was what HMRC say, and reducing to 25p for each mile above 10k miles per annum. That would be a suggested discussion point.

https://www.gov.uk/government/publications/rates-a...

[Trevor555]

Pica-Pica said:

The maximum mileage payment that is tax-free is 45p per mile, at least that was what HMRC say, and reducing to 25p for each mile above 10k miles per annum. That would be a suggested discussion point.

https://www.gov.uk/government/publications/rates-a...

These are for self employed people using their own car for work purposes?

Are they also what judges use for calculating usage for a a car being refunded?

OP would have to accept £3600 deduction from the purchase price?

What if the car was only £3000?

Confused.

[Pica-Pica]

Trevor555 said:

Pica-Pica said:

The maximum mileage payment that is tax-free is 45p per mile, at least that was what HMRC say, and reducing to 25p for each mile above 10k miles per annum. That would be a suggested discussion point.

https://www.gov.uk/government/publications/rates-a...

These are for self employed people using their own car for work purposes?

Are they also what judges use for calculating usage for a a car being refunded?

OP would have to accept £3600 deduction from the purchase price?

What if the car was only £3000?

Confused.

No, it is HMRC taxation rules for what organisations may reimburse an individual for their car use, before the individual has to pay tax.
So Firm X may pay 60p a mile to its employees, and the employees then have to declare tax on the 15p above the 45p rate.
An NHS Trust may similarly pay just 40p to an individual (employee or volunteer) for each mile. The individual then pays no tax.
They are simply taxation regulations. I have given them as an example on which to make your own judgement on what should be a fitting loss to be paid.
If you like, they are the marginal cost rates for the employee - and cover fuel, servicing, depreciation, etc. i assume the OP covers the fuel and servicing, so that needs to be taken off. As a rule of thumb, I would say fuel may cost up to 20p per mile, servicing 2p and tyres 2p. So in OP’s case, I assume depreciation is the only cost, which in any case would be based on a reasonable calculation from the purchase/sold price, Then added back in as a per mile payment.

[Trevor555]

Pica-Pica said:

Trevor555 said:

Pica-Pica said:

The maximum mileage payment that is tax-free is 45p per mile, at least that was what HMRC say, and reducing to 25p for each mile above 10k miles per annum. That would be a suggested discussion point.

https://www.gov.uk/government/publications/rates-a...

These are for self employed people using their own car for work purposes?

Are they also what judges use for calculating usage for a a car being refunded?

OP would have to accept £3600 deduction from the purchase price?

What if the car was only £3000?

Confused.

No, it is HMRC taxation rules for what organisations may reimburse an individual for their car use, before the individual has to pay tax.
So Firm X may pay 60p a mile to its employees, and the employees then have to declare tax on the 15p above the 45p rate.
An NHS Trust may similarly pay just 40p to an individual (employee or volunteer) for each mile. The individual then pays no tax.
They are simply taxation regulations. I have given them as an example on which to make your own judgement on what should be a fitting loss to be paid.
If you like, they are the marginal cost rates for the employee - and cover fuel, servicing, depreciation, etc. i assume the OP covers the fuel and servicing, so that needs to be taken off. As a rule of thumb, I would say fuel may cost up to 20p per mile, servicing 2p and tyres 2p. So in OP’s case, I assume depreciation is the only cost, which in any case would be based on a reasonable calculation from the purchase/sold price, Then added back in as a per mile payment.

Thank you, I think I'm with you now.

So a dealer can't just demand 45p per mile reduction and expect a judge to uphold it, phew...

My friend is currently negotiating with a dealer on a fair reduction for a Fiesta

Paid £5500 and had use of it for 3 months, approx 3,500 miles, equating to approx £1500

It looks like it's going all the way to court as the dealer isn't budging.

Advice to them has been that the judge will decide what's fair, hence my questions about whether the judges have clear guide lines.

I'll report back with the outcome.

[Mirinjawbro]

car was around 12k.

car has had an intermittent problem for the whole 8 months we've had it, back and forwards 5 + times.

spoke to citizens advice said due to (can't remember law) we can get a refund but they will minus mileage when bought and any damage.

the car has done approx 8k miles. WBAC are offering 7k.