40p per mile...

ashrobbo

ashrobbo

ashrobbo

Associate
Joined
3 May 2009
Posts
805
Hi Guys,

Been on an interview for a job, requires some business travelling (couldn't get a ball park figure but i'm guessing 15-20k business miles) I would need to use my own car.

They are offering 40p per mile, Is this normal without a car allowance attached?

I currently get a car allowance plus 25p p/m and i claim the 15p back from the taxman, so i'm not sensing its the best of deals, especially with the stress of running an extra 20k miles on my car per year..

Job is good in itself but its only a small step up from my current in terms of salary., But a big step in terms of experience and what it would do for my CV.
 
Sorry to hijack thread.

Can you claim tax back from mileage then? I get paid 44p per mile, never considered claiming back anything? If so... how?
 
ashrobbo said:
I currently get a car allowance plus 25p p/m and i claim the 15p back from the taxman,
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You do not claim back 15p from the taxman, 20p is the figure, and you may claim tax releif on that 20p. Big difference.

ScoobyDoo69 - you can claim tax releif on 1ppm through your standard tax return.
 
ScoobyDoo69 said:
Ha 1p seems hardly worth while. How far back can you claim?
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AMAPs have only been 45p for the 2012/13 tax year, prior to that it was 40p, so if your employer was paying 44p then the 4p would have represented a taxable benefit. If you're already under self assessment then the time limits for an overpayment relief claim are within four years of the end of the relevant tax year, and I believe the same time limits are used for repayments through PAYE.
 
Jez said:
You do not claim back 15p from the taxman, 20p is the figure, and you may claim tax releif on that 20p. Big difference.

ScoobyDoo69 - you can claim tax releif on 1ppm through your standard tax return.
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Yes true, my wording was off

So I guess if I overshoot the 10k, the 15p extra after the 10,000 will become taxable?

Sounds like its not worth the hassle.
 
Pretty sure I get taxed on the whole amount. It's added to my pay on the same side as my hours, and then the tax comes off the total amount. I may need to investigate.
 
Spamalot said:
I thought a milage allowance (up to 40/45p or whatever it is now), if you don't get a car allowance, was tax free?
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Up to 45p a mile is tax free even if you get a car allowance (if that is taxed), and even if you aren't paid 45p per mile you can claim the difference as tax relief.
ScoobyDoo69 said:
Pretty sure I get taxed on the whole amount. It's added to my pay on the same side as my hours, and then the tax comes off the total amount. I may need to investigate.
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You should not pay any tax on up to 45p per mile (for the first X thousands of miles, at least) when driving your private car for work purposes.
 
So your thoughts guys?

Would you consider a role that only paid 40p p/m and no car allowance?

Would 40p per mile cover fuel/insurance/maintenance? I've tried a few calculators but they all suggest different figures which are all over the place (some suggest 19p p/m other say 50p p/m for my car)
 
ashrobbo said:
So your thoughts guys?

Would you consider a role that only paid 40p p/m and no car allowance?

Would 40p per mile cover fuel/insurance/maintenance? I've tried a few calculators but they all suggest different figures which are all over the place (some suggest 19p p/m other say 50p p/m for my car)
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Surely that entirely depends on the other compensation and the opportunity the role presents. Nobody can appraise this for you unless you lay out every financial detail.

The cost per mile depends on the car you have. In a good car 40ppm is not particularly brilliant.
 
It also depends on how many miles you will do. Occasional use it would hardly matter what they paid, 30k/pa, it rather does.
 
Im basing on 10k per year, i currently do 8k per year so its a total of roughly 18k per year mileage.

So lets assume i retain the 40p p/m.

Car is a 1.6 fiesta Petrol, 2009 - IM in diesel territory really which makes me worry, although its no fuel guzzler, I can get 45mpg on the M'way and 37-38 driving around town.
 
You only get 45mpg from a Fiesta? That seems low to me and makes me wonder why people drive cars like this.

That aside, at 40ppm you will be profiting massively. 40ppm is a perfectly acceptable fuel rate for a low mileage business user and you should not let it put you off the job.
 
Jez said:
You only get 45mpg from a Fiesta? That seems low to me and makes me wonder why people drive cars like this.

That aside, at 40ppm you will be profiting massively. 40ppm is a perfectly acceptable fuel rate for a low mileage business user and you should not let it put you off the job.
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Thanks Jez, being as its the top end petrol engine in the fiesta I don't think its too bad. The diesel version hits 60 with ease.

Dont require anything bigger at the minute.

I've done a few calculators online and it appears with the finance on the car insurance tax servicing etc it works out about 33-34p p/m so it should cover my costs.

If its anything over 10k-11k per year though I think I will tell them im not interested.
 
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