Mileage Allowance for Cars

[keefy*2010]

If you look at the thread about Diesel and Petrol Prices and see that in
April 2011 Diesel is going to cost a minimum of £6:26 per gallon which at average of 40mpg works out at 15:65p per mile.
Have not heard anything about the
W*****s H M Tax Inspector upping the Miles Per Gallon rate of £0:40/mile that has been around since the noughties if i remember right.

So all you members that get paid by your employer to use your car will only have
24.35p left to pay for Depreciation, Road Tax, Insurance Tyres and servicing and if you do over 10,000 miles when you get only 25p per mile you will then only have 9.35p to pay for Depreciation, Road Tax, Insurance Tyres and servicing

Really good deal!!!!!!!!!!!!!!!!!!!!!

[markm]

makes me laugh, they keep putting up taxes and duty on fuel but never increase the allowance,

there was a time where it would cost about £50 to fill up the tank, it must be closer to £80 now from empty !!

F!!!!!! joke

[rjw]

with my work if we use the car we get ridiculously low rates, something like 22p a mile, (it creates uproar when some of us refuse to drive now)
however for my sports refereeing i get 40p a mile, which is good as i tend to do a lot more miles for that, getting round the south west!

[keefy*2010]

If you look at the thread about Diesel and Petrol Prices and see that in
April 2011 Diesel is going to cost a minimum of £6:26 per gallon which at average of 40mpg works out at 15:65p per mile.
Have not heard anything about the
W*****s H M Tax Inspector upping the Miles Per Gallon rate of £0:40/mile that has been around since the noughties if i remember right.

So all you members that get paid by your employer to use your car will only have
24.35p left to pay for Depreciation, Road Tax, Insurance Tyres and servicing and if you do over 10,000 miles when you get only 25p per mile you will then only have 9.35p to pay for Depreciation, Road Tax, Insurance Tyres and servicing

Really good deal!!!!!!!!!!!!!!!!!!!!!

Whoops should be 40p per mile not miles per gallon

[LJ sxi-nav]

with my work if we use the car we get ridiculously low rates, something like 22p a mile, (it creates uproar when some of us refuse to drive now)
however for my sports refereeing i get 40p a mile, which is good as i tend to do a lot more miles for that, getting round the south west!

It's a bit of a faff, but you can claim tax relief on the difference between your employers rate and the HMRC rate of 40ppm (then 25ppm after 10000 miles). Just need to keep a log of your business miles, then put a claim form in if you are PAYE, or incorporate it into your tax return if you pay tax that way (I think).

details here http://www.hmrc.gov.uk/incometax/relief-mileage.htm

definitely think the 40ppm rate needs addressing though...

[rjw]

It's a bit of a faff, but you can claim tax relief on the difference between your employers rate and the HMRC rate of 40ppm (then 25ppm after 10000 miles). Just need to keep a log of your business miles, then put a claim form in if you are PAYE, or incorporate it into your tax return if you pay tax that way (I think).

definitely think the 40ppm rate needs addressing though...

how do you go about that then? as i know of a lot of people who are doing a lot more miles than myself at work who i get on well with who i'm sure would like to know,

[m8internet]

Only applies if you are travelling for business purposes AND between different locations each day
It cannot be used for commuting

I do agree though, the rates have not changed for years, so the value of the benefit reduces every year
Equally, it is the difference between what your employer pays you and the costs paid through the FPCS scheme
Most employers have increased these rates, typically as mileage rates increase

My first claim was at a rate of about 8p per mile
Last year it was at a rate of 65p per mile; ie negative benefit and we now pay more than ther FPCS so employees need to pay tax on the benefit

[LJ sxi-nav]

how do you go about that then? as i know of a lot of people who are doing a lot more miles than myself at work who i get on well with who i'm sure would like to know,

Sorry, edited my post with a link to HMRC just as you posted!
http://www.hmrc.gov.uk/incometax/relief-mileage.htm

[rjw]

Only applies if you are travelling for business purposes AND between different locations each day
It cannot be used for commuting

i need mine about once a week, to transfer paperwork etc around local offices, however some of my colleagues are doing trips daily,

[m8internet]

You would be entitled then, as you are not commuting to/from a single place of work

However, if you are moving company documents, then you MUST have suitable business insurance, and your employer should be paying you mileage for this
If not, then they may not be aware you are performing this duty
This may open a can of worms...

I recently found an employee that was claiming for the movement of equipment
They had not been claiming mileage, but they had been claiming FPCS
Equally, they did not have business insurance
They were involved in an accident in their car
They then tried to claim against us, it back fired on them and their insurance company declined their claim as we had not authorised or paid for them to perform this duty