12p per mile

[PropertyCrashUK]

I had a rush contract come through late on Friday afternoon - client needs me for two weeks this week and next, 3 days this week, 3 days next, so I agreed to a day rate and started Monday.

I worked for them Mon, Tues, Wed and finally had a chance to read through the contract today.

They wanted me to pay my own hotel costs out of this - they have now agreed to pay the hotel costs but they insist on paying just 12p per mile for my car useage. I cannot believe that and they are saying they will not pay my 3 days work if I do not sign the contract.

What is the view on 12p per mile? My neighbour is a junior bod in the local council and gets 28p per mile.

[interested]

public sector mileage rates are usually pretty generous.

[PropertyCrashUK]

So is this a good or bad mileage rate?

It seems pretty lousey to me - how can 12p per mile cover fuel costs let alone wear and tear?

[thunderlizard]

I reckon that a daily rate is all inclusive, unless otherwise specified. You've been lucky with the hotel.

[interested]

it's not a great rate - as a permie I once had a company car (Audi A3 2.0TDI)and got 9p a mile. I think the rate for 2L petrol cars was around 12p

[becker]

12p a mile is typically the permie rate for using your own petrol car (9p if diesel), if you take the car allowance.

if you use your own car and do not get an allowance its typically nearer 40p (similar to the IR guide p/mile)

[boredsenseless]

So is this a good or bad mileage rate?

It seems pretty lousey to me - how can 12p per mile cover fuel costs let alone wear and tear?

Daily Rates are almost always fully inclusive, so you are actually doing well to get hotel and 12p.

How are you claiming the expenses? Are you filling in a standard customer expense form or are you submitting a proper VAT invoice. If its the first one get set for an IR35 issue to come at you since you are acting as an employee.

[VectraMan]

You can still claim the rest of it (i.e. up to the IR rate) against tax I believe.

[Mordac]

They can claim up to 40p per mile against tax, so it's a bit tight to only pay you 12p. I'd bill them the whole 40p. What you should really have done of course is read the contract. Then you'd have been able to dispute the mileage allowance.

[becker]

As a contractor - take the 12p/mile and keep your mouth shut about the possible 40p/mile - you don't want to be mistaken as an employee!!

As suggested by someone else - claim the 40p/mile against your company tax.