15 replies to this topic

[HippoHen]

Hello guys.

Well basically over the summer I have been working for a catering company that goes all over the country. I was fortunate that they paid for my petrol to and from events as long as I had vat receipts to hand back to them.
Anyway towards the end I got a tad lazy and let the miles accumulate and never claimed the money and just kept saying we'll work it all out at the next event to my boss. So now after a few events I have calculated all the mileage to be around 830 miles! I have a shed load of vat receipts but I'm not sure how much to charge a mile. It was easy enough to guesstimate how much to charge after each event, but now I have left the final load to accumulate it's all a bit too much!! Any ideas how much you'd be charging a mile?
This is definitely a mistake I'll not be making again!

Oh I guess this might help, the car that I drove to most of the events was a unleaded 1.4 corsa, bad I know!!

[Spud_133]

Can you not break it down into the mileage to one event you know, then work out the sum for the total of all the mileage. I would add on a little bit, as you are not just getting the fuel which was burnt, you also put miles on the car, which means wear potentially a reduced resell value

[Cooperman]

Around 40p per mile is generally accepted as about right for a small engine car.

[TORZIEnJIM]

Around 40p per mile is generally accepted as about right for a small engine car.

Yeah, prettu sure theres a standard amount for miealage on the governments tax website.

[HippoHen]

Cheers for the help there guys. Blooming heck I was gonna charge 25p a mile! As that's what one of my friends stated! Thought that wasn't enough! At around 40p a mile it comes to around £330 which does sound a bit much, I don't really want to over charge them, as in add more on, as they way I'm looking at is that I was bloody lucky to get paid petrol in the first place, plus sometimes I'd get paid my hourly wage when I was carrying passengers equipment etc, although this was pretty rarely. Also I have left it quite a long time to claim it all back. Hmmm time to think.

[Carlos W]

Cheers for the help there guys. Blooming heck I was gonna charge 25p a mile! As that's what one of my friends stated! Thought that wasn't enough! At around 40p a mile it comes to around £330 which does sound a bit much, I don't really want to over charge them, as in add more on, as they way I'm looking at is that I was bloody lucky to get paid petrol in the first place, plus sometimes I'd get paid my hourly wage when I was carrying passengers equipment etc, although this was pretty rarely. Also I have left it quite a long time to claim it all back. Hmmm time to think.

 

Have you got business use on your insurance policy?

[HippoHen]

I sure do

[Dan]

  Don't be silly, they aren't just meant to pay for your petrol.  The price needs to cover wear and tear and all the accumulated costs of your driving on their behalf too (they've taken about 1000 miles off a set of tyres and a service, used some of your insurance and road tax, etc. etc.).

 

  Claim the full amount the revenue permit per mile, but if you charge any more than that it needs to be declared.

 

Have you got business use on your insurance policy?

 

  Driving to and from work isn't limited to those people who work in the same place avery day.  Business use is driving while you are at work or for your work, not getting there and home again.  So if there was no actual transporting of goods or driving under the direction of the employer then business use isn't required.  But if it is business use, and you don't need it for anything else, then your employer should be paying the total amount it adds to your premium really.

Edited by Dan, 07 October 2013 - 10:21 PM.

[HippoHen]

Dan your right, I 'm gonna claim the full amount! Don't know why but I was having a moment of being a softy, plus right now I need every penny I can get!

[Carlos W]

 Have you got business use on your insurance policy?

 

  Driving to and from work isn't limited to those people who work in the same place avery day.  Business use is driving while you are at work or for your work, not getting there and home again.  So if there was no actual transporting of goods or driving under the direction of the employer then business use isn't required.  But if it is business use, and you don't need it for anything else, then your employer should be paying the total amount it adds to your premium really.

 

My employer insists on me having business use to enable me to be called into work for on calls (single place of work paid mileage)

 

The OP also states above that he was carrying passengers and equipment for work therefore would require business use, but as he's got it all is well.

 

HMRC website states the current approved mileage rates are 45p a mile. This is to cover fuel, insurance, additional wear and tear, depreciation etc etc.

[HippoHen]

Quick late update on this. Well basically when I sent off the receipts to my boss he stated that the amount that I was trying to claim was way too high and that they did not pay me for wear and tear on the vehicle only for the petrol itself. So basically he's not gonna pay me the amount I asked for. So I've done 828 miles and I reckon the car (2004 vauxhall corsa 16v twinport 1364cc) probably did around 35-40 mpg. Does any body know what I should now be charging? Sorry I'm no good at maths!!

Any help and advice greatly appreciated.

Thanks

[Tamworthbay]

I get 27p a mile but have done for the last 15 years! 40p a mile sounds sensible.

[HippoHen]

Apparently thats too much!

[Sorry officer!]

Around 40p per mile is generally accepted as about right for a small engine car.

Yeah, prettu sure theres a standard amount for miealage on the governments tax website.

As a school teacher I get 45 pence per mile which is the absolute upper limit for tax efficient revenue. Anymore than that and you will have to declare it and you'll be taxed on it.

[humph]

There are two figures that are important here:

 

1) The HMRC casual user rate for people using their own car for work.  This is 45p/mile for the first 10k, then 25p/mile for the remainder. HMRC say you can claim this tax free, any higher rate is taxable at normal PAYE rates. This rate includes wear, tear and depreciation.

 

2) The HMRC Advisory Fuel Rate for company cars.  This is review every quarter and is based on the price of fuel.  From December 1st this stands at 16p/mile for car 1401-2000cc.  This rate is meant to be used for companies that provide a company car or car allowance for work use, it doesn't include for wear, tear or depreciation.

 

There is no legal requirement for your employer to use the first, they can pay what they like really.  What you can do is make a simple tax rebate claim for the difference between what you've been paid and the figures in item 1.  So for example if you are paid 10p/mile for 100 miles and receive £10.00 and HMRC says you can claim £45 then you can claim a rebate on the £35 you weren't paid.  If your tax rate is say 25% you will receive £8.75 back off HMRC.

 

Anyway back on track, you need a definitive answer, so here's a question; Can't you work out how many miles he's paid you for already and work out what rate he paid you for them? What he's paid you divided by miles covered. That would be the simplest way as he can't argue against that if he's already paid you it.

 

I learnt very early on that you should never use your car for work unless you have a rate in writing as invariably employers take the piss.

Edited by humph, 17 December 2013 - 10:31 PM.