Evan at 40p a mile, are you still subsidising your company?

[xoggoth]

Oddly I was thinking about this this morning in bed (how sad). Very rough but fairly realistic figures for modest saloon:

1500cc
Costs £10k
Last 10 years from new to scrap yard
Does 100k miles in that time
Tax £120.00 pa
Insurance £400 pa
Servicing, MOT and routine repairs, tyres, disc pads etc £450 pa
Fuel say £1.20 per litre = £6.60 a gallon
Does 40mpg

Depreciation is 10p/mile
Fuel is 17p/mile
Tax and insurance is 5p/mile
Routine repairs etc are 5p/mile

Total 37p

This does not reduce if over 10k miles, does not include major repairs which can easily be £1k plus if your airbag or summit goes, my figures for mpg and routine costs are pretty optimistic, most people do not keep their cars for ten years so depreciation is much higher and many pay a lot more in the first place.

In othe words, if you use your car for business, the fecking government are RIPPING YOU OFF!

What a surprise!

[Diver]

Because that would be dishonest.

and with the way legislation is going, everything you do online is open to scrutiny and companies/forums etc. will have to give you up on request by the government

[Churchill]

Why not just double the mileage you book by telling the tax man you go home for lunch? Thus 40p/mile becomes 80p / mile. Sorted.

Because that would be dishonest.

[Pickle2]

No:

Pay it in Mileage allowance, tax free.
Put 15p worth of fuel in the car
Put 25p towards servicing tax repairs etc (which will never cover it)

or

Pay 40p as dividend
Put 16p in Mr Brown's pocket
Put 24p in your pocket
Let the company buy a pickup (oh, sorry, van) and pay all vehicle expenses including private fuel, then pick up the BIK

I don't know which is best really.

Why not just double the mileage you book by telling the tax man you go home for lunch? Thus 40p/mile becomes 80p / mile. Sorted.

[Hiram King Of Tyre]

So, take 40p:

Pay it in Mileage allowance, tax free.
Put 15p worth of fuel in the car
Put 25p in your pocket

or

Pay 40p as dividend
Put 16p in Mr Browns pocket
Put 15p of fuel in the car
Put 9p in your pocket

You are 16p a mile worse off, @ 10,000pa that's £1,600 pa

Can I be your accountant?

No:

Pay it in Mileage allowance, tax free.
Put 15p worth of fuel in the car
Put 25p towards servicing tax repairs etc (which will never cover it)

or

Pay 40p as dividend
Put 16p in Mr Brown's pocket
Put 24p in your pocket
Let the company buy a pickup (oh, sorry, van) and pay all vehicle expenses including private fuel, then pick up the BIK

I don't know which is best really.

[Charles Foster Kane]

No, and don't call me Evan.

[Archangel]

If you claim up to 10k miles at 40p, as it's Yourco Ltd, you're only really getting at best 16p a mile (The tax that you would pay if you took the 40p as salary). If you run a diesel that does 40mpg, I reckon that's 15p per mile just on fuel.

A company van is looking quite attractive...

So, take 40p:

Pay it in Mileage allowance, tax free.
Put 15p worth of fuel in the car
Put 25p in your pocket

or

Pay 40p as dividend
Put 16p in Mr Browns pocket
Put 15p of fuel in the car
Put 9p in your pocket

You are 16p a mile worse off, @ 10,000pa that's £1,600 pa

Can I be your accountant?

[Churchill]

If you claim up to 10k miles at 40p, as it's Yourco Ltd, you're only really getting at best 16p a mile (The tax that you would pay if you took the 40p as salary). If you run a diesel that does 40mpg, I reckon that's 15p per mile just on fuel.

A company van is looking quite attractive...

LPG(shush)

[tay's PA]

A company van is looking quite attractive...

That is what tay has as his company car.

[Hiram King Of Tyre]

If you claim up to 10k miles at 40p, as it's Yourco Ltd, you're only really getting at best 16p a mile (The tax that you would pay if you took the 40p as salary). If you run a diesel that does 40mpg, I reckon that's 15p per mile just on fuel.

A company van is looking quite attractive...