Using own car for your employed job

Using own car for your employed job

Author
Discussion

andygo

Original Poster:

6,953 posts

262 months

Thursday 12th September
quotequote all
Isn't it about time people using their private car for work matters were able to claim more than 45p per mile?

The 45p per mile allowed by the HMRC has remained the same for years whilst costs of owning and running a car have risen massively. The 45p per mile doesn't allow for costs such as insurance, servicing, tyres etc, never mind petrol.

A lot of employees are expected to use their personal car for business duties and are out of pocket as a result. I suppose you could buy a cheap snotter, but why should you have to?

iphonedyou

9,596 posts

164 months

Thursday 12th September
quotequote all
andygo said:
Isn't it about time people using their private car for work matters were able to claim more than 45p per mile?

The 45p per mile allowed by the HMRC has remained the same for years whilst costs of owning and running a car have risen massively. The 45p per mile doesn't allow for costs such as insurance, servicing, tyres etc, never mind petrol.

A lot of employees are expected to use their personal car for business duties and are out of pocket as a result. I suppose you could buy a cheap snotter, but why should you have to?
The 45p per mile hasn't changed in years - but then neither has the threshold for premium VED, or income tax thresholds, or IHT allowances, or...

Evanivitch

22,075 posts

129 months

Thursday 12th September
quotequote all
andygo said:
Isn't it about time people using their private car for work matters were able to claim more than 45p per mile?

The 45p per mile allowed by the HMRC has remained the same for years whilst costs of owning and running a car have risen massively. The 45p per mile doesn't allow for costs such as insurance, servicing, tyres etc, never mind petrol.

A lot of employees are expected to use their personal car for business duties and are out of pocket as a result. I suppose you could buy a cheap snotter, but why should you have to?
Can't say I've ever felt out of pocket on 45p/mile, either in a shed, PHEV or EV. Maybe, you need to align your car to running costs or accept the hit (I know from experience the v8 Audi S4 wasn't compatible with 45p/mile...)

andburg

7,686 posts

176 months

Thursday 12th September
quotequote all
If you can’t run at 45p per mile then refuse to use your own vehicle.

JagLover

43,773 posts

242 months

Thursday 12th September
quotequote all
andygo said:
Isn't it about time people using their private car for work matters were able to claim more than 45p per mile?

The 45p per mile allowed by the HMRC has remained the same for years whilst costs of owning and running a car have risen massively. The 45p per mile doesn't allow for costs such as insurance, servicing, tyres etc, never mind petrol.

A lot of employees are expected to use their personal car for business duties and are out of pocket as a result. I suppose you could buy a cheap snotter, but why should you have to?
The rate hasn't changed since 2011/12, but then neither has fuel duty. Insurance, servicing and the capital costs have gone up in that time I would agree.

Scrimpton

12,635 posts

244 months

Thursday 12th September
quotequote all
Evanivitch said:
Can't say I've ever felt out of pocket on 45p/mile, either in a shed, PHEV or EV. Maybe, you need to align your car to running costs or accept the hit (I know from experience the v8 Audi S4 wasn't compatible with 45p/mile...)
My E92 M3 wasn't either so I got a cheap electric lease. No boring miles in the M3 and a free car. Lovely.

BoRED S2upid

20,337 posts

247 months

Thursday 12th September
quotequote all
Pretty sure it’s been 45ppm for 30 years.

Muzzer79

11,057 posts

194 months

Thursday 12th September
quotequote all
andygo said:
The 45p per mile doesn't allow for costs such as insurance, servicing, tyres etc, never mind petrol.
What car are you running?!

I had a 5 series BMW and I think to run it, so excluding buying the car and the associated depreciation, was 16p per mile over 4.5 years.

Let's assume you do 5000 miles for work per year.

45p per mile gives you £2250 for this business mileage.

If you're doing just 30mpg then fuel for that mileage is just over a grand, assuming £1.40 per litre.

Unless you're running a Bentley, I can't see how maintenance for 5000 miles equates to over £1200. confused


Sheepshanks

35,001 posts

126 months

Thursday 12th September
quotequote all
One of my daughters works for the NHS and I'm sure she could get around 60p/mile.

She never claims it and says hardly anyone does. I bet all the managers do though.

Eric Mc

122,854 posts

272 months

Thursday 12th September
quotequote all
Muzzer79 said:
What car are you running?!

I had a 5 series BMW and I think to run it, so excluding buying the car and the associated depreciation, was 16p per mile over 4.5 years.

Let's assume you do 5000 miles for work per year.

45p per mile gives you £2250 for this business mileage.

If you're doing just 30mpg then fuel for that mileage is just over a grand, assuming £1.40 per litre.

Unless you're running a Bentley, I can't see how maintenance for 5000 miles equates to over £1200. confused
It's supposed to also cover depreciation of the vehicle too, which is pretty high for most vehicles.

The figures were calculated by the AA and RAC and provided to HMRC many years ago. Before that they had been set at around 25p per mile and those rates had been around for a long time too.

It is government policy to NOT increase margins, thresholds, allowances etc in line wth inflation - apart from State Pension.

andygo

Original Poster:

6,953 posts

262 months

Thursday 12th September
quotequote all
andburg said:
If you can’t run at 45p per mile then refuse to use your own vehicle.
I can't refuse to use my own vehicle, it's my company!

abzmike

9,286 posts

113 months

Thursday 12th September
quotequote all
For EV owners, my company pays the official EV rate of 7ppm, as I discovered to my surprise recently. Of course charging if you can do it at home is cheap, but you still need to have the thing.

dundarach

5,372 posts

235 months

Thursday 12th September
quotequote all
Buy something cheaper to run?

Fastpedeller

3,974 posts

153 months

Thursday 12th September
quotequote all
[quote=andygo]The 45p per mile doesn't allow for costs such as insurance, servicing, tyres etc, never mind petrol.

/quote]

I see your point and I agree it should be more than 45p, If 45p doesn't cover the petrol, does your car only achieve less than 15 miles to the gallon? wink

JagLover

43,773 posts

242 months

Thursday 12th September
quotequote all
BoRED S2upid said:
Pretty sure it’s been 45ppm for 30 years.
Used to be 40p before 2011.

Scrimpton

12,635 posts

244 months

Thursday 12th September
quotequote all
abzmike said:
For EV owners, my company pays the official EV rate of 7ppm, as I discovered to my surprise recently. Of course charging if you can do it at home is cheap, but you still need to have the thing.
Pretty stingy on their part if it is your own (not company) car. AFAIK you can still claim tax relief on the difference between that and the 45p rate.

phil4

1,322 posts

245 months

Thursday 12th September
quotequote all
abzmike said:
For EV owners, my company pays the official EV rate of 7ppm, as I discovered to my surprise recently. Of course charging if you can do it at home is cheap, but you still need to have the thing.
That's the rate if it's a company car... if it's a private car it doesn't matter what it is, 45p is the amount you can claim.

OutInTheShed

9,338 posts

33 months

Thursday 12th September
quotequote all
BoRED S2upid said:
Pretty sure it’s been 45ppm for 30 years.
Pretty sure it was more than that in the mid/late 90s, if you had something with a big engine.
With petrol at about 45p a litre I was in profit with my V6 shed.


These days, diesel is 15p a mile or so, shed maintenance/depreciation maybe the same again. Extra insurance for business use is buttons for me, YMMV.

It's all OK until you get a puncture or someone runs into you.
The bad things that you average out over the decade can hurt short term.

andburg

7,686 posts

176 months

Thursday 12th September
quotequote all
andygo said:
andburg said:
If you can’t run at 45p per mile then refuse to use your own vehicle.
I can't refuse to use my own vehicle, it's my company!
Hire a car
Buy a car with the business
Use public transport

You can…whether it makes more financial sense to us a different question

andygo

Original Poster:

6,953 posts

262 months

Thursday 12th September
quotequote all
Thanks for those suggestions, I’m afraid none of those are really practical!😂