Mileage Invoicing
Discussion
I'm doing some consulting work for a company currently and was just thinking about calculating my mileage.
I know HMRC allow 45p a mile for the first 10,000 miles, but this was the same 15+ years ago. And in this time fuel has gone up, wear and tear replacement parts have gone up, everything is way more expensive than it was 15+ years ago.
With that in mind do you think I should be charging more per mile than 45p (if so what?) or should I just suck it up?
I know HMRC allow 45p a mile for the first 10,000 miles, but this was the same 15+ years ago. And in this time fuel has gone up, wear and tear replacement parts have gone up, everything is way more expensive than it was 15+ years ago.
With that in mind do you think I should be charging more per mile than 45p (if so what?) or should I just suck it up?
45p pm was once quite generous.
I'd say it's still generous only less so......unless you're running a 1970's V8 Trans Am
Keep in mind that this is just the tax free allowance you're permitted to claim. You can charge whatever you like to your client but anything over the .45p, you will be taxed on.
My standard approach is to cost each job with a lump-sum travel allowance which covers any means of transport to deliver the project. That gets charged regardless and on some jobs, I loose out but on others I gain.
I'd say it's still generous only less so......unless you're running a 1970's V8 Trans Am
Keep in mind that this is just the tax free allowance you're permitted to claim. You can charge whatever you like to your client but anything over the .45p, you will be taxed on.
My standard approach is to cost each job with a lump-sum travel allowance which covers any means of transport to deliver the project. That gets charged regardless and on some jobs, I loose out but on others I gain.
You can charge what you like to cover your mileage. It is just another bill to your customer. It just becomes part of your overall business income. HOW MUCH you can charge is down to what you and your customers are OK with.
The 45p per mile rules are nothing to do with how much you charge customers. It is to do with how much you, as an individual, could process through your own business' expense records as your mileage claim from your own business.
The 45p per mile rules are nothing to do with how much you charge customers. It is to do with how much you, as an individual, could process through your own business' expense records as your mileage claim from your own business.
sideways sid said:
Charge mileage at a sufficient level that you won't regret using your own car when sat in traffic not doing what you're being paid to do. At LEAST double the 45p HMRC level.
And consider losing it in the main bill. A separate entry for mileage is one of those little things that some clients can get hung up on.Gassing Station | Business | Top of Page | What's New | My Stuff