Transport/petrol allowance

**Darren at Fox-Bartfield** · 29 July 2016, 14:32

Mileage

That's correct for 7,540 miles and the rate as provided by HMRC, nothing wrong with it as long as the mileage is genuine.

The rate includes not only the fuel element but calculated to include other vehicle running costs which is why it will look slightly inflated.

**IPSE** · 29 July 2016, 14:35

Originally posted by rutar View Post

For those driving to.from client what seems reasonable as a petrol expense?

Over a year,Someone I know travels 29 miles each eay for 130 working days

So teh calculation is:
one way = 29 miles * £0.45/m = £13.05
two ways = £26.10
130 working days = £3,393

Seems excessive (and is far more than what was actually spent on petrol) but thats how it is...
Whwn this goes through the P&L I dont want it to draw attention? Seems much?

HMRC scale rates apply and remember, it's not just meant to cover fuel - there's depreciation, wear & tear and servicing costs for the vehicle. Most average petrol cars actually cost about £1 per mile to run.

**northernladuk** · 29 July 2016, 14:36

You can claim the 45p per mile for the first 10k miles. 25p thereafter. It's the government approved rates so I'd you did it you can claim it. It's also to cover wear and tear on the car, insurance, tax and so on so not just petrol.

This is extremely fundamental stuff. There are pages on the government website and every single accountant mentions it in their guides etc. You really should be able to find this out without having to ask and the first port of call should really be your accountant.

Check out the newbie guides to the right as well -->

**rutar** · 29 July 2016, 14:42

Yes, I realize iys fundamental, but still thought the £3,393 expenses was quite high so wanted to see what people thought.. for me thats what a forum is about..

**northernladuk** · 29 July 2016, 15:14

I assume this is your doctor friend again? If so and he's inside IR35 he can't claim a penny by the way...

But then is it??

Over a year,Someone I know

I dont want it to draw attention?

You need to make your mind up. Is it you or is it not? Is it someone else and you are doing the books... if so... erm.... well.

**northernladuk** · 29 July 2016, 15:34

This is all dependant on how long you have been working in that location for as well by the way. If you've been there or expect to be there over 24 months then you can't claim anything.

**malvolio** · 29 July 2016, 17:44

Is it worth asking how many other fundamental things the OP doesn't know they don't know...?

**ASB** · 30 July 2016, 09:50

Originally posted by IPSE View Post

HMRC scale rates apply and remember, it's not just meant to cover fuel - there's depreciation, wear & tear and servicing costs for the vehicle. Most average petrol cars actually cost about £1 per mile to run.

Yes they do. Which makes the scale rates look a bit mean.

the presumption of course is that you already have a car so the incremental costs are what matter - otherwise it would be a company car and no private mileage.

On the basis of incremental costs it is a bit fairer. The additional depreciation is obviously not linear.

if it is genuinely fair though they would let you run a car on thecompany and reimburse private mileage at scale rates with no bik charge.

**teapot418** · 30 July 2016, 10:31

Originally posted by northernladuk View Post

This is all dependant on how long you have been working in that location for as well by the way. If you've been there or expect to be there over 24 months then you can't claim anything.

WNLUKS, also, you can only claim T&S if you not caught by IR35.

Transport/petrol allowance