Using Car For Work
- Thread starter xirokx
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Associate
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- 6 Sep 2005
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- Cambridgeshire
The government will give you tax relief on anything up to 45p/mile. My employer pays this full amount, but I don't think they are obliged to.
Soldato
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- 14 Nov 2002
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If they are already paying your insurance I would say around 35p per mile to allow for fuel and wear.
but they already pay the fuel and insurance, I doubt they could pay the full maximum without it being taxable.
Associate
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- 6 Sep 2005
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- Cambridgeshire
True. The 45p number would apply to the total paid I guess.
Most places won't give you a direct sum, they just give a figure per mile.
Its up to you to make sure you have the right level of Business cover, so make sure you get that added onto your policy.
Size of car / efficiency has nothing to do with what your company pays you.
Its up to you to make sure you have the right level of Business cover, so make sure you get that added onto your policy.
Size of car / efficiency has nothing to do with what your company pays you.
http://www.hmrc.gov.uk/mileage/index.htm
http://www.hmrc.gov.uk/paye/exb/a-z/m/mileage-expenses.htm
Sets out what you need to know. You should be aware that your company paying for your insurance could (would?) be deemed a benefit in kind and thus may affect your tax code.
http://www.hmrc.gov.uk/paye/exb/a-z/m/mileage-expenses.htm
Sets out what you need to know. You should be aware that your company paying for your insurance could (would?) be deemed a benefit in kind and thus may affect your tax code.
45p per mile here but they don't pay my entire year's insurance like yours seem to be doing.
Sounds like you're going to end up in some sort of halfway house between a company car where all expenses are paid for and you claim back business fuel used vs a private car where you are responsible for expenses but claim back a 45p per mile rate to cover it all (supposedly).
Personally, i'd much rather be wholly one or the other or the tax implications will be more messy than I could be bothered with.
FWIW, my car averages about 35mpg and this gives me a fuel cost of roughly 20p per mile at the moment, so the proposed rate would likely cover fuel but you're still left to pick up the tab on stuff like your servicing, new tyres etc.
Sounds like you're going to end up in some sort of halfway house between a company car where all expenses are paid for and you claim back business fuel used vs a private car where you are responsible for expenses but claim back a 45p per mile rate to cover it all (supposedly).
Personally, i'd much rather be wholly one or the other or the tax implications will be more messy than I could be bothered with.
FWIW, my car averages about 35mpg and this gives me a fuel cost of roughly 20p per mile at the moment, so the proposed rate would likely cover fuel but you're still left to pick up the tab on stuff like your servicing, new tyres etc.
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Caporegime
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Bad. That sounds very, very low.
Soldato
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I got 35p/mile. I think thats pretty fair but 20p is quite low.