New mileage rate (55p/mile)

[hobnob]

Here's a bit of good news, that I don't think anyone's shared here yet. Yesterday the government announced that you can claim 55p/mile (for a car):
Travel — mileage and fuel rates and allowances - GOV.UK
That's backdated to 6th April, i.e. the start of the current financial year.

[ladymuck]

About time too.

[malvolio]

I well remember the long arguments PCG had with Osborn to get it from 40ppm to 45ppm, so it is well overdue.

Still at least15pm below the actual costs of course...

[NotAllThere]

I looked it up. Over here it's the AA equivalent's calculation that's accepted. Of course, that would simplify the (and reduce take), so there's no way HMRC are ever going to do that unless forced.

Maybe that's the issue with HMRC. It's all rules and interpretations thereof, whereas elsewhere it's about what is reasonable.

[Protagoras]

Still at least15pm below the actual costs of course...

Curiously, that's about right for me - how did you know?
Car costs about 70p/mile to run with 30% of that being variable costs.

[WTFH]

Car costs about 70p/mile to run with 30% of that being variable costs.

Mine is about 2ppm on fuel, £250 a year insurance.

[eek]

Given that the allowance increase is because of petrol / diesel prices it's very strange that the over 10,000 miles rate is unchanged, it's not like fuel gets cheaper once you've done the first 10,000 miles in a year.

[ladymuck]

Given that the allowance increase is because of petrol / diesel prices it's very strange that the over 10,000 miles rate is unchanged, it's not like fuel gets cheaper once you've done the first 10,000 miles in a year.

Yeah I noticed that. Also noticed that motorbike rates haven't changed either.

[Protagoras]

Given that the allowance increase is because of petrol / diesel prices it's very strange that the over 10,000 miles rate is unchanged, it's not like fuel gets cheaper once you've done the first 10,000 miles in a year.

I think the rationale was that once upon a time the notion was that fixed costs were largely recovered in the first 10k miles. Clearly that's no longer the case and the system encourages the use of hire cars and claims for 'actuals'.

[eek]

I think the rationale was that once upon a time the notion was that fixed costs were largely recovered in the first 10k miles. Clearly that's no longer the case and the system encourages the use of hire cars and claims for 'actuals'.

The reason for the sudden increase in allowances is because fuel prices have increaded - fuel is not a fixed cost...

Now it may well be that the majority of ultra distance company cars are now electric but it's not like service station chargers are cheap...