Business milage

[BenRichardson]

Evening all,

recently moved to a company where i get paid a milage rate 0f 18p a mile for business travel.

does anyone get this amount to cover their fuel use? is this a sensible amount?

i seem to drive along looking at the fuel guage rather than enjoying my nice car now!


Ben

 

[jamesfuller]

That seems a bit tight!

 

[gIzzE]

If it is a company car then 18p per mile is about right, if it is your own car then it should be around 45p per mile for the first 10,000 miles and then 25p for every mile after that.

 

[Deleted member 11979]

Blimey, that is tight, I get 45 p

 

[Dieselman]

Equivalent to 33mpg. Seems pretty good to me.

 

[Dieselman]

If it is a company car then 18p per mile is about right, if it is your own car then it should be around 45p per mile for the first 10,000 miles and then 25p for every mile after that.

Blimey, that is tight, I get 45 p

I would have thought there is a flat monthly payment as well and the 18ppm is just for fuel.

 

[ivan1983]

That is very tight!
It is normally in the range of 30p -40p per mile.
See if they will rent you a hire car for business mileage, thats what I do.
Also if thats all they will pay you can claim the vat back on the fuel, its on the hrmc website somewhere.

Saying that if you have been given a company car allowance then that figure seems more reasonable

 

[jamesfuller]

18p sounds like just fuel! If its your own car you need maintenance and wear & tear covered.

The last time I was paid mileage in the Uk was four years ago and it was 40p then!

 

[Peterr_ibg]

HMRC give advisory fuel rates that depends on engine size and fuel type.

http://www.hmrc.gov.uk/cars/fuel_company_cars.htm

Assuming you are driving a company car, or given a car allowance, then the tables should tell you if you are being paid a fair rate

 

[blue gnome123]

50p per mile here, but then set our own price per mile.

 

[Bobby Dazzler]

Evening all,

recently moved to a company where i get paid a milage rate 0f 18p a mile for business travel.

does anyone get this amount to cover their fuel use? is this a sensible amount?

i seem to drive along looking at the fuel guage rather than enjoying my nice car now!


Ben

Ben, 18p per mile I s exactly what the HMRC advisory rate is for a diesel with a capacity greater than 2 litres - I assume it's a C250 CDi that you're referring to?

If it's a company car, or if you receive a car allowance, then it's spot on.

 

[BenRichardson]

Ben, 18p per mile I s exactly what the HMRC advisory rate is for a diesel with a capacity greater than 2 litres - I assume it's a C250 CDi that you're referring to?

If it's a company car, or if you receive a car allowance, then it's spot on.

yup, get 7k allowance.

seems a bit tight to me but i've had a fuel card for the past ten years!

 

[Ian Donkin]

Sounds like you get the same as me Ben - it sucks. You can however claim tax relief on the difference between what your employer pays you and the revenue approved rates of 45p / first 10k then 25p thereafter. The table referred to is meant to be for company provided cars where you pay fuel and reclaim business use.

Your 'car allowance' is a red herring - it's taxed just like the rest of your compensation so effectively you are using your own private car for work. Keep a full record and reclaim on your tax return.

 

[Spin_bowler]

I had a company car when I was at BT (2004-6) and I think I used to get 12ppm for petrol.

It was a frequent jest that anything over 2,500 RPM you were on your own money.

 

[JohnBar]

It would be worth your while finding a local accountant and have him run a ruler over this. You might find you recover his fee several times over. Just a suggestion.

 

[PXW]

If it is your car (effectively paid for by the car allowance), then you can claim back the difference between what your employer pays you per mile and the HMRC rates for your vehicle as a tax deduction on your return - business mileage only, of course. The logic is that the car allowance is fully taxed, so from their perspective this is simply your own vehicle used for business purposes. Your employer of course has a different perspectives in that he is stumping up the car allowance so will only pay the c.18ppm because he considers he has already paid the depreciation, capital cost etc in the allowance.

 

[Dieselman]

If it is your car (effectively paid for by the car allowance), then you can claim back the difference between what your employer pays you per mile and the HMRC rates for your vehicle as a tax deduction on your return - business mileage only, of course. The logic is that the car allowance is fully taxed, so from their perspective this is simply your own vehicle used for business purposes. Your employer of course has a different perspectives in that he is stumping up the car allowance so will only pay the c.18ppm because he considers he has already paid the depreciation, capital cost etc in the allowance.

Correct and it appears the O/p is getting £7k cash in lieu plus 18ppm, which seems right to me.

 

[grober]

HM Revenue & Customs: Travel - mileage and fuel allowances

 

[Dieselman]

If the O/p does 20,000 miles p.a. he can claim £6500 tax free, anything over is taxable.
From his employer he gets £7000 lump sum and £3600 fuel payment.

I'm not sure what the query is?

 

[Palfrem]

You pay tax & NI on the £7K

You can set the difference between 10K miles @ 45p plus rest @ 25p per mile minus your payment from company 18p per mile for 20K miles against HMRC business expenses.