Mileage rate petition

[malvolio]

No. You have to prove the entire cost base. Depreciation, tyres, oil, servicing, insurance, tax etc. etc.
And factor in personal use. Then you can claim it at the COST of running it, not an arbitrary figure.

And you will have to put any extra money paid over the AMAP rate on a P11d.

Yes, I do realise that. I was presenting a basic case, not a total solution. I don't even do business mileage these days. And it wasn't actually an arbitrary figure, it was a reasonable estimate but I wasn't trying to quote a precise amount.

The only way to do it would be to calculate the total cost of ownership and pay a proportion of that per mile for the business use. But that really wasn't the point I was trying to make.

[Lance]

Yes, I do realise that. I was presenting a basic case, not a total solution. I don't even do business mileage these days. And it wasn't actually an arbitrary figure, it was a reasonable estimate but I wasn't trying to quote a precise amount.

The only way to do it would be to calculate the total cost of ownership and pay a proportion of that per mile for the business use. But that really wasn't the point I was trying to make.

Understood.

I looked into it years ago, and 45p per mile was sufficient to make money as I drive older cars. That still remains the same. The only way I'd be getting a newer car now would be a company electric.

[northernladuk]

Understood.

I looked into it years ago, and 45p per mile was sufficient to make money as I drive older cars. That still remains the same. The only way I'd be getting a newer car now would be a company electric.

One thing to consider, and I'm sure you have, is that you have to pay some of that anyway. Insurance, tax, servicing etc. The only things that really affect the cost will be what extra the business miles put on which comes to a different figure so the 45p becomes slightly more attractive. Just basing it on petrol use is too simplistic but doing a full cost of ownership also leads to inaccuracies.

So you're average bod, medium miles, average family car is probably still OK'ish.

If some idiot (cough) decides to do their business miles in a tuned 3.8L twin turbo with tyres at £250 pop then they can't really complain.

[malvolio]

One thing to consider, and I'm sure you have, is that you have to pay some of that anyway. Insurance, tax, servicing etc. The only things that really affect the cost will be what extra the business miles put on which comes to a different figure so the 45p becomes slightly more attractive. Just basing it on petrol use is too simplistic but doing a full cost of ownership also leads to inaccuracies.

So you're average bod, medium miles, average family car is probably still OK'ish.

If some idiot (cough) decides to do their business miles in a tuned 3.8L twin turbo with tyres at £250 pop then they can't really complain.

I used to do mine is a Volvo 850R that chewed up a set of front tyres (£260 Pirelli P60Zs) every 7k miles or so, when the rate was 40ppm. I was very good friends with my local tyre supplier!

The point is, the HMRC rate is not a fixed limit; if your car costs you 90ppm to run (as most do*) then as per HMT's quoted guidance, that is what you can pay out, free of tax - provided you have the paperwork.


* Just out of interest, according to a fleet owners page, a Fiesta is around 60ppm and a Range Rover 3.0D - so not the top of the range - is around 140ppm.

[northernladuk]

I used to do mine is a Volvo 850R that chewed up a set of front tyres (£260 Pirelli P60Zs) every 7k miles or so, when the rate was 40ppm. I was very good friends with my local tyre supplier!

The point is, the HMRC rate is not a fixed limit; if your car costs you 90ppm to run (as most do*) then as per HMT's quoted guidance, that is what you can pay out, free of tax - provided you have the paperwork.


* Just out of interest, according to a fleet owners page, a Fiesta is around 60ppm and a Range Rover 3.0D - so not the top of the range - is around 140ppm.

Yeah. Surreal that the more you pay for a tyre the less new tread and softer sports compound so you end up wearing it faster and the quicker you are back for another. The overall cost seems to be exponential to the cost of the tyre if you get me.. but that aside..

Yep to the rest.

[malvolio]

Yeah. Surreal that the more you pay for a tyre the less new tread and softer sports compound so you end up wearing it faster and the quicker you are back for another. The overall cost seems to be exponential to the cost of the tyre if you get me.. but that aside..

Yep to the rest.

The PZeroes or the Michelin equivalent were Z-rated and the only tyres allowed on it, or you risked invalidating your insurance. Believe me, I looked at alternatives and while you could get them in the right size, fitters wouldn't fit them. Later models had 4WD and traction control that worked, so were rather more gentle; mine could spin the front wheels at 60 on a damp road...

[WTFH]

tyres at £250 pop

Cheap tyres.

The current recommendation for mine are £300 a corner from Black Circles.

[malvolio]

Cheap tyres.

The current recommendation for mine are £300 a corner from Black Circles.

I'm talking 20 years ago (or last week, as I think of it...) But defo use Blackcircles these days, unbeatable service and prices.

[ladymuck]

I need some new rear tyres, will check them out - thanks!

[psychocandy]

Mrs' employer (she works for a medical services company) was paying 20p a mile. (and she does 1000 business miles a month).

Worse of all they told their staff that HMRC would "make it up" to 45p a mile. Nooooooooooooooooooooooooo!!!!!!!!!!!!!!!!!!!!!!!! !!!!!
(I'm sure you all know, you get tax relief on any shortfall - in this case, you'd get tax relief on 25p a mile which for a basic rate taxpayer equals 5p a mile tax rebate).

Then again when she worked for the nhs and it was 45p a lot of nurses would never claim expenses because "it took too long". 1000 miles a month at 45p a mile for a few hours admin. hmmmm.....

Its been upped to 30p now but its not brilliant.