Cost of using own car for work/business.

The_Arbiter

The_Arbiter

The_Arbiter

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Am interviewing for a job next week that I think requires own use of vehicle, I say "think" as it's a bit ambiguous.

I'll have to run the numbers when I know more about the job I am looking at, as I don't currently know the current miles, if I'll be carrying kit, and how much allowance I can get, plus on-call. I'm certain this doesn't require a van, so that's partially relevant. But if it is I'll just not bother as the money just isn't enough to invest in a van.

I've not done it before and only had a quick browse on the .gov website at the allowances. Car devaluation is a huge consideration too, which I'll have to take into account. So just looking for some input or minor guidance on the subject so I have a head start if needed.

Thanks
 
It would depend on how much they pay you per mile. 45ppm means that you make a little money (for the 1st 10k) 25ppm just about covers fuel, with no accounting for wear and tear.
 
The Angry Welshman said:
my insurance went down when i added business use, as it meant it wasnt parked up all day for theives to steal or break into....
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Mine went up, because it will be driven more miles per year, so the risk of accidents is higher.
So I guess adding business use, doesn't increase the insurance BUT you clearly are going to drive more miles, so maybe that is what increases the price.
 
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Well, consider me educated on business use insurance.

I remember being quoted an extra £30-£40 a month back in 2015 for adding Commuting to my Social/Domestic/Pleasure policy on a Honda CR-V. That was for an E18 < LHR > E18 daily commute though.
 
Feek said:
It’s never cost me more than about a fiver to add business use.
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Have had similar experiences, it's never gone up 'that' much, make sure you ask about the rates as it's up to 45p per mile (for the 1st 10,000) and then 25p per mile after, you can claim tax relief if they are paying less than 45p but if they are I wouldn't do it because it barely covers fuel at the bottom rate.
 
Maundie said:
Have had similar experiences, it's never gone up 'that' much, make sure you ask about the rates as it's up to 45p per mile (for the 1st 10,000) and then 25p per mile after, you can claim tax relief if they are paying less than 45p but if they are I wouldn't do it because it barely covers fuel at the bottom rate.
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Generally you'll find most companies will only be paying significantly less than 45p/25p if they're also giving you a monthly allowance. At which point the per mile payment is likely to be aimed purely at covering fuel and so will be more like 10-15p depending on what guidelines the company choose to follow, if any. (you can still claim tax relief though, as you point out)
 
The 45ppm has not gone up from some time so is looking low. I get an allowance of 8k and all my work fuel paid. I'm am paying 50% of my salary into my pension so I am paying 20% tax on the allowance.
 
MassiveJim said:
It would depend on how much they pay you per mile. 45ppm means that you make a little money (for the 1st 10k) 25ppm just about covers fuel, with no accounting for wear and tear.
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This was a big arguement at my old place.

We used to get £100/month for wear and tear plus £X per mile (I can't remember what it was) - which felt fair. However they eventually ditched the flat fee, and just incresed the £X per mile. The problem was, it wasn't enough. We weren't allowed to claim for punctures, damage from car parks, or anything as part of the contract stated the £X covered all of this - but a dent, or a new tyre pretty much put you in a 'negative' financial situation. If you ran an old banger that did 50mpg, fine. If you had a decent car, not so much, especially as some of the sites we visited had very compromised car parks.

In other words, find out what the expecations are for your usage, and what financial reimbursement is provided if required.
 
Check with your employers policy, as some employers wont allow you to use your own car for business purposes. Although a lot still do it
 
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