What mileage rate do you charge / get paid

[Tony Bryer]

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.

[Dave Liquorice]

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 =A3700 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.

[Peter]

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.

[John Laird]

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.

[Chris Holmes]

With regard to TOP's question, it's a bit like your consultancy fees Anna. Though I suspect most customers would not be happy to be charged exhoribtant travelling expenses if they were already being charged the going rate for the job (Read might go and ring up the paragliders in YP and see what they charge for Lime plastering :=)))

Here last time I checked they were paying 48p/Mile for a 1.4L engine and even more for gas guzzling sin-mobiles. For most trips (not that there's many :=(( I take the train.

I could have made a nice "profit" (based on the premise that most of my fixed costs are already paid whether I take the car or leave it sitting on the drive) on a round trip to Worster, but i'd have lost my street cred as an eco-warrior. Actually, I think on that trip I could probably have hired a car for my wife to drive for the week, and still made a profit!

I think the policy of my last school was much more sensible. The Bursar there would pay the second class train fare. If you chose to take your car instead, it was your loss/gain.

[Dave Liquorice]

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?