John P
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| posted on 10/5/06 at 11:06 AM |
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Mileage allowance for using your own car
Does anyone get a flat rate mileage allowance for using their own car on company business?
My firm pay 28p / mile but this seems very low with current petrol prices so I'd like some guidance on what the "going rate" is.
(I realise that the Inland Revenue set limits but these are much higher and depend on how many miles you do per year).
Many thanks,
John.
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muzchap
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| posted on 10/5/06 at 11:08 AM |
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Hi John,
I can also confirm 28ppm
Which as you rightly point out is shocking in the current petrol/diesel RIP OFF era!
I just wish this government had never been voted in, they have wrecked the country 
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If you believe you're not crazy, whilst everybody is telling you, you are - then they are definitely wrong!
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oliwb
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| posted on 10/5/06 at 11:09 AM |
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I was looking into this last night with mr inland revenue....the recomended allowance is 40p per mile for the first 10,000 miles then 25p for every
mile after that. If your company give you less (as with yours) your allowed to claim back the difference in your tax return. Not sure how hard it
will be form wise though! I don't qualify because I'm towing RYA boats at 60p per mile....seems good until you remember the trailer is
1.3 tonnes, I have a 27 year old landrover which adds up to sub 20 mpg and a dead clutch by the end of the summer! Oli.
If your not living life on the edge you're taking up too much room!
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Potster
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| posted on 10/5/06 at 11:14 AM |
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You can claim some of the underpayment back.
Link to form
Hope this helps.
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smart51
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| posted on 10/5/06 at 11:15 AM |
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I get 26.5 p per mile for my car (less than 1400cc)
To be fair, that covers it for me. My smart has averaged 46 MPG over 2 years of urban commuting. At 98.9p per litre that is a fuel cost of 9.77
pence per mile. Add 2p/mile for tyre wear, 4p/mile for servicing and 5p/mile for depriciation and I still have a few pence per mile spare.
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DaveFJ
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| posted on 10/5/06 at 11:15 AM |
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flat rate 40ppm 
Dave
"In Support of Help the Heroes" - Always
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nick205
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| posted on 10/5/06 at 11:16 AM |
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my company pays £0.265 per mile (whatever size engine you choose to have) for people using their own cars on business, so you're doing better
then us.
As it happens I have a company car and claim back my mileage at the IR set rate of £0.10 per mile. At current diesel prices of £0.99 / litre that
means I have to average over 45 mpg to break even  it certainly makes you lighter on the loud pedal
If diesel prices increase further I will be "adjusting" my mileage to suit 
NICE avatar DaveFJ
[Edited on 10/5/06 by nick205]
[Edited on 10/5/06 by nick205]
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DavidM
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| posted on 10/5/06 at 11:36 AM |
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40 ppm reducing to 25 ppm after 10000 miles at mine.
David
Proportion is Everything
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David Jenkins
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| posted on 10/5/06 at 11:40 AM |
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I believe those are the 'approved mileage rates' as far as the IR are concerned.
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asn163
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| posted on 10/5/06 at 11:53 AM |
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We get 40ppm up to a max. of 100 miles
Simon
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stevebubs
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| posted on 10/5/06 at 12:06 PM |
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we get paid 15.6ppm - well under current petrol costs.
Think they're starting to wonder why so many people have started taking the train.....
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ecosse
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| posted on 10/5/06 at 12:20 PM |
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I'm at the bottom end of this scale for sure, (although i get a good allowance as well) 17.5ppm flat rate, I claim the balance back every year
which helps a bit.
1st year the IR asked for proof of miles travelled but they have not asked for this since.
Cheers
Alex
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nick205
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| posted on 10/5/06 at 12:33 PM |
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that's another thing, the IR have started asking for VAT receipts for the fuel now as well
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Taz Surfleet
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| posted on 10/5/06 at 12:42 PM |
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only need VAT receipts if the company claims the VAT back the 40p per mile is supposed to cover insurance and maintenance not just petrol, 40p per
mile for 1st 10,000 and 25p thereafter is standard however you can adjust it so you claim 40p per mile spread over a 12mth year ie you claim the first
833 milkes per mnth at 40p and the rest at 25p.
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muzchap
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| posted on 10/5/06 at 01:07 PM |
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Taz - interesting point!
I checked my 'Insurance Policy' - it didnt cover Business Trips.
If I included 'Business Trips' - it went from £500 fully comp to £1000 fully comp!!!
Therefore, on 28ppm - I'm not even going to consider it, unless they pay for my excess on the insurance as well.
To all those using your own cars on company business - check your insurance!!! (or become good liars!)
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If you believe you're not crazy, whilst everybody is telling you, you are - then they are definitely wrong!
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Aboardman
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| posted on 10/5/06 at 05:19 PM |
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I get 35p per mile and had a letter saying i could claim the other 5p back from tax man, sod that i had loads of grief from them when i was a high
rate tax payer, and them stupid tax forms still adjusting my tax code nearly 2 years after been at high rate.
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zilspeed
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| posted on 10/5/06 at 05:22 PM |
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40p / mile here as well.
I do 9,995 business miles a year
My car - Ye Famouse Olde Audyi cost 400 quid and does 40-45mpg. It has so far done about 17,000 miles in my hands.
I save 100 quid a month on income tax as well compared to my previous leased Passat 4motion.
Insured through direct line and including business use - £280 a year.
As our American friends say - you do the Math. 
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coozer
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| posted on 10/5/06 at 05:33 PM |
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I get 32p now, although it used to be 34p, then the price of petrol shot up.....
1972 V8 Jago
1980 Z750
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the_fbi
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| posted on 10/5/06 at 06:28 PM |
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We get 35ppm up to 4000 then 28ppm after 4000 miles. Same for diesel and petrol users.
Co. car users get 12ppm Petrol and 10ppm Diesel. (although it used to be a flat 15p and luckily accounts don't know HR changed the rate!).
I've changed from a co. car to a car allowance as I just don't do the private mileage to make it worthwhile having a company car.
Fine, if I was doing 40 miles to work and back each day, and 300 at the weekend/evenings I'd have a company car again, but I do very little
private mileage so happy sticking that on my own car.
Then again, 7.5 years ago when I got my Calibra I stuck 26K on it in one year as business miles (before the company realised I needed a company car)
so that pretty much killed its value anyway
Even in its current state of "tune" it'll do 37mpg on a journey but I only get the company car rate of 15p as I get my allowance too
(£375/month).
All in all I'm way better off as I'm not paying company car tax (which was on a 29% co2 car) and I'm actually using something which
I left dormant in the garage for 5+ years.
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chockymonster
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| posted on 10/5/06 at 06:45 PM |
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Although you get the car allowance you can still claim the 40/25p rate from the inland revenue.
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the_fbi
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| posted on 10/5/06 at 07:07 PM |
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quote:
Originally posted by chockymonster
Although you get the car allowance you can still claim the 40/25p rate from the inland revenue.
Yea, but I've never had to do a tax return in my life, so I'm trying to keep a low profile.
Normally the event of getting a company car triggers one, it didn't with me. If opting out doesn't trigger it, I don't really want
to create my own trigger.
Then again, the money would sure outweigh the b*llache.
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bimbleuk
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| posted on 10/5/06 at 07:26 PM |
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Yep 40ppm here as well. 9 year old Audi A4 which does 48 mpg. I cover Manchester office from Gloucestershire!! Thankfully I don't have to do the
trip too often but enough to make it worth while. Even better is its an expense so no tax on it 
[Edited on 10/5/06 by bimbleuk]
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chockymonster
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| posted on 10/5/06 at 08:42 PM |
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quote:
Originally posted by the_fbi
quote:
Originally posted by chockymonster
Although you get the car allowance you can still claim the 40/25p rate from the inland revenue.
Yea, but I've never had to do a tax return in my life, so I'm trying to keep a low profile.
Normally the event of getting a company car triggers one, it didn't with me. If opting out doesn't trigger it, I don't really want
to create my own trigger.
Then again, the money would sure outweigh the b*llache.
As a paye person that's unlikely, although the IR can decide to ask for a tax return at any point!
I'm checking for you, but it may be possible for you to claim it back on your P11D
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JoelP
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| posted on 10/5/06 at 08:44 PM |
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sounds like a bit of a raw deal chaps!
You wanna try driving a legacy turbo for work with no one to bill for fuel, except myself! About £20 per day on the more distant jobs
[Edited on 10/5/06 by JoelP]
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Jubal
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| posted on 10/5/06 at 08:50 PM |
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You don't really claim the difference between the so-called "approved" rates and the actual rate you get from your company back from
the tax man. What you do is offset the difference against your taxable income. This can only be done on your tax return.
It's therefore worth more to a higher rate tax payer but if you do any biz mileage and your company pays less than the 40/25 then you are
leaving cash on the table that you are entitled to. If you do any significant mileage then it adds up to a lot.
Edited to say that you can also have your paye code adjusted to pay the rebate through the year instead of claiming it on the return. You'll
still have to do a return and balance the books so to speak but even if you've over-claimed then you can ask your tax office to collect the over
payment via the following year's tax code. It's worth getting on top of all this.
[Edited on 10/5/06 by Jubal]
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