What mileage rate do you charge / get paid

I've just been looking at my job quoting spreadsheet and see that I cost my mileage at 25p a mile - thats just for the van fuel, running costs, depreciation etc not for my time behind the wheel.
I suspect I plucked this figure out of mid air a couple of years ago so can anyone suggest a better one?
Anna
~~ Anna Kettle, Suffolk, England |""""| ~ Plaster conservation and lime plaster repair / ^^ \ // Freehand modelling in lime: overmantels, pargeting etc |____| www.kettlenet.co.uk 01359 230642
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snipped-for-privacy@kettlenet.co.uk (Anna Kettle) writes:

The RAC & AA can provide figures. 25p is *way* too little!
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On Fri, 11 Jun 2004 14:31:53 GMT, snipped-for-privacy@kettlenet.co.uk (Anna Kettle) wrote:

Try asking the AA or RAC for their recommended rates. I am sure that they are twice that.
You are offering a specialised and skilled service, and I don't suppose that there are that many people doing what you do.
There are none in Yellow Pages for example - the nearest match being Parachuting and Paragliding.
Given that situation, your time is precious, so it's reasonable to charge travelling time as well if you have to go a long way.
.andy
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The Inland Revenue will let you pay yourself 40p per mile (25p for miles>10000) so that seems a good starting point:
http://www.inlandrevenue.gov.uk/rates/mileage.htm
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Anna Kettle wrote:

But don't forget that is an allowance of 40p per mile against your tax bill, so if you are a high-rate tax payer, you will only get about 40% of that back (as far as I remember that is). The logic seems to be that you have paid for petrol with money that has already been taxed, so they give you the tax back.
Mike
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On Fri, 11 Jun 2004 21:17:57 +0100, a particular chimpanzee named
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No, anything over 40p/mile is the rate at which they think you're making a profit, and tax you on the excess at your higher/highest rate.
Local government's rates are 40.4p/mile up to 8,500miles/year, then 11.2p after that (based on a fuel price of 76.18p/litre).
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wrote:

What's the rationale behind that? This is for using your own car which you are fully funding including fuel, insurance, depreciation?
At 40.4p/mile, I can imagine that you might just about break even, but at 11.6 it would be losing hand over fist.
I imagine that a BCO could do a lot more than 8500 miles/year on business?
.andy
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On Sun, 13 Jun 2004 12:47:43 +0100, Andy Hall wrote:

Donno, it was partly that that made us all start using hire cars...

He may well get a car either as a "company car" or access to a fleet/pool car for business use.
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On Sun, 13 Jun 2004 14:44:36 +0100 (BST), a particular chimpanzee
and produced:

You'd think! No, as part of my contract of employment, I'm required to provide a vehicle for which I'm paid the amount above per mile. Part of that (about 700 per year) is paid as a "lump sum". 8500m x 0.404 = 3434. This is meant to be the total cost of running a car, but the only way I can see that this can be done is to drive a sub-2000 banger with virtually no loan.
My annual mileage for work is about 5000-6000 miles per year, but with a lot of stop-start motoring. This reduces the mpg considerably. Last week, I filled up on the Monday, and by the end of the week after just using my car for work in and around the city, the computer was reading in the low 30s (almost 10 mpg less than average).
This is fairly common amongst Local Gov't BC depts, with very few offering lease cars; usually the larger rural areas where annual mileages are likely to run into the tens of thousands, and then only because it's cheaper for the Council to run a lease car than pay the mileage. I've never had a lease car, so I don't know the true costs, but I've estimated that I'd be >2000 a year better off (even after tax) than I am now.
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wrote:

Might have been in the 70s. Is this paid net, or is it subject to tax and NIC? (most benefits in kind are). Big benefit :-)

I suppose a lot of local authority areas would have this scenario - 1-2 large towns/cities and less in the surroundings, so a lot of short trips.

It's pretty difficult to work out, and I reckon that you pretty much need input from an accountant to be sure. The older system of tax hits with discounts on car and fuel depending on business mileage was much easier to work out. I do relatively little UK business mileage (mainly trips to the airport), so it was advantageous to switch to a car allowance and use a personal lease some while ago.
.andy
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randomly hit the keyboard

Do they actually specify that the vehicle must be a car, and is your work completely within a city or other non-rural (ie smallish) area?
Don't know how much paraphanalia your average BCO has to cart around to do the job, but you could probably make a profit running a modern scooter, and that'd mark the end of any parking problems! Or a SMART car....
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RichardS wrote:

York BCOs / planners have a pool of SMARTS & LPG Astra's - Hugo should transfer. Although all the local govt employees based in town are supposed to use Park & Ride from the ring road, so it's a drive-park-bus-collect-drive-return-bus-collect-drive shuffle.
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Park
I used to work for York. Never again! It sounds even worse now.
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On Mon, 14 Jun 2004 09:26:18 +0100, Hugo Nebula wrote:

My insurance is around 350, that leaves 350 for servicing and repairs from the lump sum. At 80p/l and 30mpg petrol is about 12p/mile so you have another 28p/mile or 1680/year after petrol costs as well... Doesn't look to far from the mark to me, for running costs.
This doesn't take into account the capital or depreciation, which does seem a little unfair as it is a contractual obligation to provide a car but "you knew that when you joined". The lump sum and 40p/mile do seem to more than fully cover the actual costs associated with your business milage.
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On Mon, 14 Jun 2004 22:47:52 +0100 (BST), a particular chimpanzee
and produced:

Less 160 for tax

No, it's only 31.7p per mile.

Which if you're doing 18,000m per year in anything but an old banger is significant at about 5p/mile
I've done a little spreadsheet to take into account all my running costs. The fixed costs (tax, insurance, loan, etc) are just under 4000 per year and the marginal cost (fuel, servicing, depreciation, etc) is 17.1p/mile. If I only used it for personal use, then my annual bill would be 5700, whereas if I do 6000m for work, the annual cost to me is 4200.
In my case, I'd have a car anyway, but as Tony pointed out, the number of miles influenced my choice of car. I have a diesel, whereas if I hadn't had to have it available for work, I may have gone for a sportier petrol engined car. There are people in my office who are two-car families purely because they need a car for work. For these people, the 4200 is money which would have gone directly into their pockets.
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On Tue, 15 Jun 2004 10:22:30 +0100, Hugo Nebula wrote:

<snip>
Less tax from the 40p/mile?
This I find rather odd, but then I find the whole thing of company cars, lease cars, pool cars when mixed with exclusive use and/or private use odd anyway.
Suffice to say I've *never* been taxed on any mileage rate as agreed between the company and the IR. If the mileage rate was 40p/mile thats what I got in my pocket and no requirement to declare it either. This is providing my own vehicle completely(*) at my expense, including insurance for "business use" etc. Same for meal and overnight allowances paid at scale rates.
(*) Maybe that 700 lump sum throws a spanner in the works as it's not directly related to an expense and you then end up having to be taxed on all car allowances.
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On Tue, 15 Jun 2004 10:22:30 +0100, Hugo Nebula wrote:

<snip>
Less tax from the 40p/mile?
This I find rather odd, but then I find the whole thing of company cars, lease cars, pool cars when mixed with exclusive use and/or private use odd anyway.
Suffice to say I've *never* been taxed on any mileage rate as agreed between the company and the IR. If the mileage rate was 40p/mile thats what I got in my pocket and no requirement to declare it either. This is providing my own vehicle completely(*) at my expense, including insurance for "business use" etc. Same for meal and overnight allowances paid at scale rates.
(*) Maybe that 700 lump sum throws a spanner in the works as it's not directly related to an expense and you then end up having to be taxed on all car allowances.
--
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wrote:

Not quite. You could have reclaimed the *tax* on the 30p element that you did not receive but had to fund out of your own pocket. The taxman is not running your car for you, but (within reason) he does not wish to tax you on the money that you have to pay.
At most, you could have claimed 12p/mile (40% of 30p). The 40p figure used to be 45, but there may have been two levels according to engine size and that was the higher, not sure.
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On Fri, 18 Jun 2004 12:05:47 +0100, Peter wrote:

I can't be arsed counting miles. Anything for the car, fuel, insurance, repairs, servicing etc goes through the books. I claim all the VAT back (but use the fuel scale charge so the VAT man doesn't get upset) and the total nett cost is put against tax, less about 25% for personal use.
Avoids the problems of shared trips, like I take the kids to school but also visit the PO and bank on business. Is that personal use or business trip?
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Liquorice wrote:

If an employee is going to argue that he only has a car because he needs it for the job then the employer should meet all the fixed costs (+marginal costs obviously). But if you are in this position something like a Toyota Yaris will do the job and probably leave with some change out of the allowance. Obviously most people would have a car anyway, and probably drive something that costs more to run, but that being so it is not unfair for them to expect the employer to meet only a proportion of the overheads.
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