Mileage allowance

[Funkstar]

Ok chaps, how much do you get from your companies for using your car for business purposes?

We get 40p/mile which hasn't changed in the past 8 years, since I joined the company.

I'd like to let management know what others are getting as a comparison.

Or if anyone knows of graphs showing the cost of motoring over the past 8+ years that would be awesome

[Salazaar]

We use 40p/mile because that's the rate set by HMRC. Up to 10,00 miles in one tax year after which it drops to 25p/mile, much to the annoyance of our inspectors, who have to keep very close tabs on their milage so they hit 10,000 as late as possible in the year.

http://www.hmrc.gov.uk/rates/travel.htm

[Funkstar]

is it? Oh.

I thought it was just a figure picked out of thin air

[Salazaar]

I don't think it's mandatory but AFAIK a lot of businesses stick to it.

[tiggerai]

it's 40p/mile as Salazaar says - thats what the tax man has set it at for tax returns (J was doing his a couple of weeks ago)

[Saracen]

As I understand it, you can be paid anything your employer wishes but ... if they pay more than the HMRC maximum as mentioned by Salazaar, the excess is taxable and you need to account for it and pay the tax.

Conversely, if you get paid less than those amounts (40p/25p) you can reclaim against tax ... if you care do do the paperwork.

The easiest bet for most is to go exactly with the HMRC limits and avoid the hassle.

[Funkstar]

Ok, thanks guys, I had no idea about all this.

Kind of sucks that the HMRC rate hasn't changed in all this time though

[Russ]

i get 58p a mile and an extra 2p a mile if i carry a passenger, do about 250 a month so works out ok, they basically pay for all the petrol that goes into my car. dont think its based on engine size, as mine currently is 1.6 but managers is 1.2 and we both get 58p

[GheeTsar]

40p/mile here too and has been since I joined in 2002. In comparison - the price of petrol:

[Saracen]

Ok, thanks guys, I had no idea about all this.

Kind of sucks that the HMRC rate hasn't changed in all this time though

HMRC don't change the rate because they don't set the rate. It's set by statute by the government in the Finance Act every year. It's the AMAP scheme (Approved Mileage Allowance Payments.

When tackled about why it hadn't gone up to reflect fuel costs, the governments answer was :-

- depreciation costs have gone down
- fuel efficiency has gone up
- it's in line with their overall aims and environmental concerns to discourage unnecessary journeys


I know, I know. Don't shoot me - I'm just repeating the message.

[Barakka]

According to the AA figures the cost per mile of running a small engine/cheap petrol car for around 15,000 miles/year has only gone up from 27.7p/mile in 1998 to 33.38p/mile in 2009 , so still well under the 40p/mile being paid

[badass]

According to the AA figures the cost per mile of running a small engine/cheap petrol car for around 15,000 miles/year has only gone up from 27.7p/mile in 1998 to 33.38p/mile in 2009 , so still well under the 40p/mile being paid

Don't let things like the full picture get in the way of a good rant by the car owning public though!
Let's just focus on the figures that have gone up like petrol and insurance costs and ignore everything else.

[Funkstar]

Don't let things like the full picture get in the way of a good rant by the car owning public though!
Let's just focus on the figures that have gone up like petrol and insurance costs and ignore everything else.

In a way I'm not really bothered, I thought it was just my company being tight

[Guy]

I get 26ppm for the first 10,000 miles, then after that it drops to 16ppm.

I can as Saracen has said (and I have had to fill out a few weeks ago! Bloody forms) to claim the difference back between that and 40ppm for the first 10k, then 25ppm for anything after.

So think yourself lucky you get the 40/25ppm to start with, without having to wait a year for the taxman to cough up the difference

[slugs]

we get 40p as well i did wonder where the value comes from and the reason for it never changing

[Russ]

Didn't realise it was so low!