New mileage rate (55p/mile)

[WTFH]

Quite. Yet fixed costs have gone up too - and significantly for service / repair - but there's no account of this in terms of changing the 10k miles threshold or increasing the milage rate to cover the fixed cost increases.

No one I know now uses their personal car for business.

Flip side is that compared to when some of our esteemed members were working, there aren't as many business drivers on the road as a percentage of total road users. Many people are able to work remotely, the need to go to a client site every day is rare.

My wife used to do 2 days a week delivering training on client sites and 3 days a week in the office. She now does 2 days a month on client sites, and 1 day a quarter in the office.
My annual business mileage 20 years ago was around 12,000. In the last financial year it was under 1,000. The wear & tear due to business use is a fraction of that due to personal use.
Business use of a car is a lot rarer than it used to be, I suppose some "contractors" put the car through their Ltd even though it's mostly personal use, but that's a choice they make.

[Protagoras]

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

Quite. Yet fixed costs have gone up too - and significantly for service / repair - but there's no account of this in terms of changing the 10k miles threshold or increasing the milage rate to cover the fixed cost increases.

No one I know now uses their personal car for business.

[malvolio]

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

plus depreciation, plus lost interest on capital, plus servicing, plus consumables...

If you want an objective answer, the RAC are saying up to 65ppm for a "standard" petrol car, rather less for an EV.

[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...

[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'.

[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.

[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.

[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.

[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.

[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.

[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...

[ladymuck]

About time too.

[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.