Do you use your Car for Company Mileage?

[mushy2007]

For the past three years I have used my own car for work and claimed the excess milage from the taxman and get paid a monthly allowance from work for the car.

As I am sure you are all aware its costing us a fortune to run cars thses days, however if you use your car for company milage its now starting to physical cost you to do your companys milage!

I have been keeping a close eye on this as recently the money I claim back doesnt appear to be covering what you get back of the tax man(to cover tyres. insurance etc), the agreement back in 2002 was if you opt out you can have 40p per mile to 10,000 miles and 25p thereafter. Which may sound good; wrong!

This allowance was set when fuel at the time cost 78p for diesel and 76p for petrol. The government then made a promise of if the price of fuel should change by more the 10% they would review these rates. Well guess what they havent!

You are stuck if you stay in the car schemes they take your tax code off you and if you opt out you pay for the business miles out of your own pocket.

You are probably wondering why this was ever introduced in the first place and guess what******, I bet you thought money did'nt you!

Its all to do with carbon emmissions, they restructed the company car policys to make everyone be more aware and use more friendly cars, however this resulted in the first year of tax revenue dropping by more than 40million and currently stands at 120million pound less now than in 2002, thats why they havent reveiwed our fuel rates as in the process of brown tongueing other countries on the carbon front they lost out in the back pocket and we are all left to suffer!!!

My rant is over, but it would be interesting out of all the members here who gets this allowance.

[Karl]

this is why I have a company car, it doesn't pay to have a private car for personal use.

[vectrac20tsri]

i use my car for work is this for every company cause they give me fuel each week but not even half as much as i use and for tyres,well basicly in there eyes it my problem

[G.O'Rilla]

this is why I have a company car, it doesn't pay to have a private car for personal use.

Sounds familiar - I had the option but with the miles that I do it just wouldn't pay. Did all the numbers and decided to let someone else buy the car

[Big-Pete]

i use my car for work is this for every company cause they give me fuel each week but not even half as much as i use and for tyres,well basicly in there eyes it my problem

I think you should still be able to put in a claim form to the inland revenue.. I used to use my car for work and although the company paid for all the fuel i used ( i just gave them a receipt and they paid it ) i put a claim in for around 15000 miles and i got a tax refund and my tax code also went up to reflect future mileage claims.. But Mushy is right the cost of everything has gone up a lot since they decided on the 40p per mile, which is only for the 1st 10k or so then it goes down a lot...

[mike houston]

I am on the FPCS scheme- one thing though- the 40p per mile is for the first 10000miles, and 25p thereafter

I do 30k miles on business per year- which earns me £9000 per year- about £3000 to £3500 goes on fuel, and another £3000 on finance for the car...which leaves at least £2500 for maintenance, insurance and tax....which is more than enough for approx 6 tyres (£900) a service(£200) and insurance and tax( £700)

At the end of 4 years, I p/x the car ( worth £3000ish ) for another 6 month old one and start again...

TBH, if you choose a nearly new diesel, you're more than covered, but the £3000 spent on fuel would be £5000 on a big petrol engine, so short answer is no- you don't lose out, if you're sensible

PS- You can claim an additional 5p per mile per passenger carried...

[bandrew]

Mine is even more complex

I get £400 a month car allowance which is taxed, I then get only 13pence a mile BUT

I can claim the difference in TAX from the Revenue, i.e. first 10,000 miles difference between 13pence and 40 pence and the the rest at the difference between 13pence and 25 pence.

All in all I think it works out, just about and I wont pay 20k for a company care over my working life and have nothing to show for it at the end.

I payed cash when I got the Dignum in December last year which was a very nice feeling!

Andy

[mushy2007]

this is why I have a company car, it doesn't pay to have a private car for personal use.

The only reason I opted out was they changed the period we have the cars from 2 to 4 years.

This meant in the 4th year you would pay tax on the value when new, when in truth the cars worth around the same as the tax you pay on it!

[mushy2007]

i use my car for work is this for every company cause they give me fuel each week but not even half as much as i use and for tyres,well basicly in there eyes it my problem

Read some of the other posts on here, but yes you can claim taxable allowance.

The form you need is a P87 and you must find out how much per mile your company pay you and then fill the form in. Its very easy 7 or 8 columns and a signature.

[bandrew]

I opted out because we were offered...wait for it and bear in mind I do 40-60k a year.....

Corsa
Clio
C2
C3
Punto

All bottom spec and all small engines under 120KG/KM

Now is that taking the **** or what?

Andy