Current mileage reimbursement trends
Discussion
Hi,
I'm interested to know what the current general consensus is on mileage claim rates offered by employers.
No car allowance (it was, in effect, rolled into my annual salary on a recent salary adjustment). Due to grade within the business I can only claim the HMRC company car advisory rates, and then separately claim the tax difference.
Is this fairly widespread now?
Thanks,
I'm interested to know what the current general consensus is on mileage claim rates offered by employers.
No car allowance (it was, in effect, rolled into my annual salary on a recent salary adjustment). Due to grade within the business I can only claim the HMRC company car advisory rates, and then separately claim the tax difference.
Is this fairly widespread now?
Thanks,
Not particularly current, but our, £600-750/mth depending on job, allowance was also rolled into our salaries, then mileage was paid at 15p/mile.
Most of the £600/mth people were doing 25K/yr, paying tax at 40% so the allowance worked out about even for the firm but was a couple of £K better for employees (than being paid the full 45p/25p).
Trouble was that it wasn't long before people forgot about the allowance and never took the tax rebate into account and felt all they were getting for using their car was 15p/mile.
Most of the £600/mth people were doing 25K/yr, paying tax at 40% so the allowance worked out about even for the firm but was a couple of £K better for employees (than being paid the full 45p/25p).
Trouble was that it wasn't long before people forgot about the allowance and never took the tax rebate into account and felt all they were getting for using their car was 15p/mile.
smithyithy said:
MustangGT said:
Box Fresh said:
I get £875/mth plus 45p/25p a mile.
Currently running a 2016 bmw 335d owned outright.
That is very generous indeed.Currently running a 2016 bmw 335d owned outright.
I've spent the last 25 years in corporate, it has varied from company car with fuel card t ocar allowance, until i moved to my current non corporate role i have always used and only been given the HMRC advised rate £0.15p etc then claimed the remainder as tax allowance on SA.
This role give me car allowance £6500 and the 55p a mile which I found strange but I'll take it.
I run a Tesla model Y that I charge at 3p per KWH and this month have done circa 1500 miles of which only 51 have been business miles.
My claim is £28.05 and the cost to "fuel" the other 1450 odd miles is circa £17 which is crazy, so I'm a tenner up.
I go to Glasgow next month, I have 1300 free supercharger miles to use so will cost me the full charge at home first and refill when home so lets say £4 and I'll be claiming something like £350 back. I feel I need to tell them they should maybe pay the recommended amount. Also not sure on any tax implications of it.
This role give me car allowance £6500 and the 55p a mile which I found strange but I'll take it.
I run a Tesla model Y that I charge at 3p per KWH and this month have done circa 1500 miles of which only 51 have been business miles.
My claim is £28.05 and the cost to "fuel" the other 1450 odd miles is circa £17 which is crazy, so I'm a tenner up.
I go to Glasgow next month, I have 1300 free supercharger miles to use so will cost me the full charge at home first and refill when home so lets say £4 and I'll be claiming something like £350 back. I feel I need to tell them they should maybe pay the recommended amount. Also not sure on any tax implications of it.
if you get a fuel benefit as well as company car, then many companies allow you to claim a far lower mileage rate as you aren't paying for fuel as a consumption based amount. Car allowance or no allowance usually means you can claim the typical HMRC mileage rate for tax purposes which is 55ppm as of this tax year.
Blown2CV said:
if you get a fuel benefit as well as company car, then many companies allow you to claim a far lower mileage rate as you aren't paying for fuel as a consumption based amount. Car allowance or no allowance usually means you can claim the typical HMRC mileage rate for tax purposes which is 55ppm as of this tax year.
I'd have thought fuel benefit is a rare 'perk' these days, given the horrendous tax rates?Blown2CV said:
if you get a fuel benefit as well as company car, then many companies allow you to claim a far lower mileage rate as you aren't paying for fuel as a consumption based amount.
If your fuel is paid for on a company car then you wouldn't be paid anything per mile.You may have to repay private mileage, typically at the HMRC Advisory Fuel Rates. We had to repay a fixed amount and that was knocked off the fuel benefit charge. Even 20yrs ago it was getting iffy whether or not having fuel included was worth it but some people really did hammer it.
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