Reply to: 10k mileage used up, what next?

[ASB]

I've been travelling to a site for nearly 1 year, I've been offered a 16mnth extension which will obviously take me over the 2yrs. Can I still claim local hotel as a business expense or is that a no no as well (as I know I will be there over 2years?)

Also, if I can't claim my milage any longer I am thinking of a co. car and co fuel card - as I'm a 22% tax payer, the tax should be low and my high business mileage will justify. Thoughts?

Nowts claimable. I would have thought a 12 month extension was a better bet....

With the co car what you really need is generally high personal miles to make the bik worthwhile.

[Billy Pilgrim]

I've been travelling to a site for nearly 1 year, I've been offered a 16mnth extension which will obviously take me over the 2yrs. Can I still claim local hotel as a business expense or is that a no no as well (as I know I will be there over 2years?)

Also, if I can't claim my milage any longer I am thinking of a co. car and co fuel card - as I'm a 22% tax payer, the tax should be low and my high business mileage will justify. Thoughts?

Ask for a 12 month extension instead ??????

[kirk]

I've been travelling to a site for nearly 1 year, I've been offered a 16mnth extension which will obviously take me over the 2yrs. Can I still claim local hotel as a business expense or is that a no no as well (as I know I will be there over 2years?)

Also, if I can't claim my milage any longer I am thinking of a co. car and co fuel card - as I'm a 22% tax payer, the tax should be low and my high business mileage will justify. Thoughts?

[ASB]

I spend around £120 for 5 days journey to work with a little left in the tank. that gives me so about 630miles on about 90litres. Thats about 31mpg. I recorn £25 per day, same cost as a B&B. Ok Mileage claim gives me £31.25 as you said but I am pilling the mileage on and car depreciating at an alarming rate!

It's not going to be great for the depreciation, but you are subsidising the car yourself quite significantly even before that. If you've got run flats then you consuming tyres at about 5p per mile, then theres all the extra servicing. At an extra 30k miles per year that going to be a reasonable sum etc.

You *might* just find it beneficial to chat with your accountant and look at have a self employed contract with your company which might then improve your expense situation (but might not).

Would buying a cheap diesel car for about £1000 as a company car be beneficial?. company can pay for the business miles and i would not use it for personal use. will this imply a nil BIK?. This way, i save my x5 from high mileage and garage costs

Your chances of being able to get away with nil BIK are probably NIL. Availability of the vehicle is enough to trigger the charge.

But the economics of a cheap old diesel bought for 1k personally and used for 30k business miles seems a useful way of getting 9k out of the company tax free.

BYW the changed vehicle scam was stopped in 2005 so you can no longer do 10k in one vehicle at 40p, 10k in another at 40p etc.

[Nixon Williams]

Alan,

Is there not a risk that HMIT might take the view that the employment was connected if the client didn't change (i.e. the list of associated is only exemplary not absolute).

[I ask because a mate has been recently TUPE'd and the advice they were given was that even though it's a new employer it was associated so the clock is not reset]

Yes, I was assuming that the contract would not be at the same site as previously, thanks for making that clear.

So to sum up, the clock resets for each new employment but assuming that the actual client/site changes.

Alan

[BolshieBastard]

I managed about 260k miles on my previous 320i. sad to see it go

They do make exceeding good engines, diesel and petroleum distilate!

I know some people who have bimmers then go and buy a pug of something to 'keep the miless off' their bimmer. But why!? Every car is virtually worthless once you buy it so, you may as well enjoy driving it.

Well, that's what I say!

[css_jay99]

BTW I have a 3 series diesel that's now got 108k miles on it.

I managed about 260k miles on my previous 320i. sad to see it go

[css_jay99]

I reckon your fuel consumption figures are out a bit. £25 for 125 miles? Or is it 125 miles each way?

For the former that means you are doing less than 30 mpg so either you are driving a Ferrarri or drive like you wish you were...

At 125 miles a day you should be claiming £31.25 a day.


Edit. Missed the fact that you drive an X5. Change it or drive summat cheaper to run

I spend around £120 for 5 days journey to work with a little left in the tank. that gives me so about 630miles on about 90litres. Thats about 31mpg. I recorn £25 per day, same cost as a B&B. Ok Mileage claim gives me £31.25 as you said but I am pilling the mileage on and car depreciating at an alarming rate!

I dont really want to sell the car for something small as This is the only bit of luxury I have treated myself to after driving my previous 17yr old bmw 3 series for 9yrs before the head gasket failure when i started this gig.


Would buying a cheap diesel car for about £1000 as a company car be beneficial?. company can pay for the business miles and i would not use it for personal use. will this imply a nil BIK?. This way, i save my x5 from high mileage and garage costs

i really dont know why the govt is not increasing this 40/25p allowances.

css_jay99

[BolshieBastard]

Hi all,

I have used up my 10k mileage claim in 4months so now down to 25p a mile. I recorn I burn about £25 per day on petrol for 125mile round trip which is about the cost of a B&B near the client

Now I have to think about depreciation on my X5 and the rising cost of diesel.

Whats now my best option of having more money in my pockets? (or taking more from hector)?.

I dont really want to buy a banger to do the journey as I have a minimum of 4 months left on contract and posibly would not want to renew should i get something closer to home, but then again finishing a contract in november aint always the best thing?.


.... and no wise cracks either........


css_jay99

I was similar to this. I do 160 mile a day commute and quickly used up the 10k miles. But so what? You bought a car you wanted so why worry about putting miles on it and its depreciation?

Your car is worth a lot less because of its engine size already plus, the new tax rates are also affecting residuals even though they dont fully come into force for at least a year.

TBH, drive your car and enjoy it. Sleeping ina B&B isnt worth it. BTW I have a 3 series diesel that's now got 108k miles on it.

[scooby]

Alan,

Is there not a risk that HMIT might take the view that the employment was connected if the client didn't change (i.e. the list of associated is only exemplary not absolute).

[I ask because a mate has been recently TUPE'd and the advice they were given was that even though it's a new employer it was associated so the clock is not reset]

TUPE is a whole different kettle of fish. unless harmonised, it is likely that the previous T&Cs are still place and the new company is just continuation of service.

[ASB]

Not strictly correct.

You can re-start the 10,000 rate when you change employments. So if you were with an umbrella upto 31/07/08 and then started your own company, the 10,000 mile clock would start from zero.

The mileage rates are per tax year and do not reset when the location is changed.

Alan

What if I travel on business for more than one employment?


If you have two or more employments that are associated then your business travel for both is added together to work out when you are no longer entitled to the higher mileage rate for business mileage in a car or van for that tax year.

Employments are associated if they are

* with the same employer, or
* with different employers who are under the same control, for example, two different companies in the same group of companies.

If the employments are not associated you are entitled to the higher mileage rate for business mileage travelled in each employment as though you did not hold the other employment.

Alan,

Is there not a risk that HMIT might take the view that the employment was connected if the client didn't change (i.e. the list of associated is only exemplary not absolute).

[I ask because a mate has been recently TUPE'd and the advice they were given was that even though it's a new employer it was associated so the clock is not reset]

[original PM]

Not strictly correct.

You can re-start the 10,000 rate when you change employments. So if you were with an umbrella upto 31/07/08 and then started your own company, the 10,000 mile clock would start from zero.

The mileage rates are per tax year and do not reset when the location is changed.

Alan

I did not know that - you may have just caused a lot of contractors to go on an umbrella co. merry go round to keep the 40p per mile allowance.

[DaveB]

Hi all,

I have used up my 10k mileage claim in 4months so now down to 25p a mile. I recorn I burn about £25 per day on petrol for 125mile round trip which is about the cost of a B&B near the client

Now I have to think about depreciation on my X5 and the rising cost of diesel.

Whats now my best option of having more money in my pockets? (or taking more from hector)?.

I dont really want to buy a banger to do the journey as I have a minimum of 4 months left on contract and posibly would not want to renew should i get something closer to home, but then again finishing a contract in november aint always the best thing?.


.... and no wise cracks either........


css_jay99

I reckon your fuel consumption figures are out a bit. £25 for 125 miles? Or is it 125 miles each way?

For the former that means you are doing less than 30 mpg so either you are driving a Ferrarri or drive like you wish you were...

At 125 miles a day you should be claiming £31.25 a day.


Edit. Missed the fact that you drive an X5. Change it or drive summat cheaper to run

[Nixon Williams]

change client/location? As far as I am aware (from my accountant) you can restart the 10k when you change locations......

Not strictly correct.

You can re-start the 10,000 rate when you change employments. So if you were with an umbrella upto 31/07/08 and then started your own company, the 10,000 mile clock would start from zero.

The mileage rates are per tax year and do not reset when the location is changed.

Alan

[ChimpMaster]

change client/location? As far as I am aware (from my accountant) you can restart the 10k when you change locations......