Charging mileage
Author
Discussion

JM

Original Poster:

3,170 posts

236 months

Tuesday 5th February 2019
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Hi folks,

I'm just curious what amount per mile others are charging customers for travel to their site by car or van.

In particular trades, electricians, plumbers HVAC etc?


I've not always charged per mile (or call-out charges!) but some customers are wanting a fuller breakdown, rather than a catch all labour and travelling charge etc that I currently do. Which usually is just me adding a few pounds in for fuel costs etc.


JM

Nick_13

69 posts

122 months

Tuesday 5th February 2019
quotequote all
I’m employed but I would work out distance from business address to the job and charge a return journey at a set rate. I believe when paying an employee, HMRC approve £0.45 per mile as a rule of thumb for employees. So you could start with this? That way each customer is paying for you to go from business address to their house and back to base so it is a fair calculation?

Sochaux

144 posts

104 months

Tuesday 5th February 2019
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50p per mile but all of our work is commercial.

Equus

16,980 posts

131 months

Tuesday 5th February 2019
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I'm not 'trade' but I've always used HMRC rates, both to charge to customers, where appropriate, and for personal mileage claims against the company account (so we're charging customers actual cost to the company).

Since my usual transport is a Range Rover, I'm probably running it at a loss, truth be told...

SS2.

14,712 posts

268 months

Tuesday 5th February 2019
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We charge 55p per mile plus an hourly travel rate. Tolls, parking etc - all charged in addition at cost.

JM

Original Poster:

3,170 posts

236 months

Thursday 7th February 2019
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Thanks for the replies.

I've gone for 48p per mile for now, but will look into it more in the future and try and find out what others charge.

DirtyHands

119 posts

113 months

Thursday 7th February 2019
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I charge my customers £1 a mile one way outside of my normal operating area (30 miles from base)

bogie

17,094 posts

302 months

Thursday 7th February 2019
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I think the .45p HRMC rate what you can charge or be paid by an employer as a tax free benefit.

You can charge a customer £1 or your employer could pay you £1, but you will be taxed on the amount over .45p

JM

Original Poster:

3,170 posts

236 months

Thursday 7th February 2019
quotequote all
DirtyHands said:
I charge my customers £1 a mile one way outside of my normal operating area (30 miles from base)
Thanks for the reply.

Just to clarify.

Do you mean £1 each way? Or do you just charge them for one direction?

Also if the customer is 29 miles away there is no charge but if 31 miles they will be charged an extra £1, or would it be £31?


I have done some invoices tonight and the mileage charged has been over 150 miles in all cases, one was 599 miles.
That's for the total round trip to that individual customer/site. So I was just wondering if it was standard to charge the full amount for all miles or does the rate ever reduce over a certain amount, e,g 100 miles?

Edited by JM on Thursday 7th February 19:55

DirtyHands

119 posts

113 months

Thursday 7th February 2019
quotequote all
JM said:
Thanks for the reply.

Just to clarify.

Do you mean £1 each way? Or do you just charge them for one direction?

Also if the customer is 29 miles away there is no charge but if 31 miles they will be charged an extra £1, or would it be £31?


I have done some invoices tonight and the mileage charged has been over 150 miles in all cases, one was 599 miles.
That's for the total round trip to that individual customer/site. So I was just wondering if it was standard to charge the full amount for all miles or does the rate ever reduce over a certain amount, e,g 100 miles?

Edited by JM on Thursday 7th February 19:55
I only charge them in one direction as they are all private individuals and I don't want to price myself out the market.

If the customer is 30 miles from base or less then its free, once its over 30 miles I then charge £1 for each mile travelled over the 30 miles (to be fair I normally then round it up by 5 miles each time) so if they are 35 miles away I charge £5 if they are 45 miles away £15. I rarely travel further than 70 miles from base for a job as its not worth it for me.

My customers seem to agree its fair and as i'm based in North East Wales, I can get to most places on the correct day of the week pretty quickly, if I was somewhere in the south the numbers just wouldn't work.