Omega Owners Forum

Chat Area => General Discussion Area => Topic started by: Mr Skrunts on 10 May 2010, 14:31:31

Title: Fuel Exspences - Mileage allowance
Post by: Mr Skrunts on 10 May 2010, 14:31:31
What/how are they worked out.

Are there guidelines.

Can they get away with what they want.

Are there anual mileage guidelines.
Title: Re: Fuel Exspences - Mileage allowance
Post by: kevinminton on 10 May 2010, 14:47:34
An employer can pay what they want, but HMRC will treat it as taxable over 40p for annual mileage up to 10,000.

see hhttp://www.hmrc.gov.uk/paye/rates-thresholds.htm#8

K
Title: Re: Fuel Exspences - Mileage allowance
Post by: Mr Skrunts on 10 May 2010, 14:49:16
Just talking to some one who is only getting 27p per mile, and told to take it or leave.
Title: Re: Fuel Exspences - Mileage allowance
Post by: JamesV6CDX on 10 May 2010, 14:56:41
Quote
Just talking to some one who is only getting 27p per mile, and told to take it or leave.

You could run a V8 Rangie for that  :D

Our claimable rate for engines over 1.4 litres is 44p per mile. Guess it needs to cover wear and tear etc too..
Title: Re: Fuel Exspences - Mileage allowance
Post by: kevinminton on 10 May 2010, 14:58:37
IME most employers pay the "HMRC rate". As an employer, it would be difficult to argue that paying any less was justified, because HMRC clearly think that 40p has no "benefit" and therefore must meet the employee's out-of-pocket costs with no change.

I'm not aware of any private sector guidelines. There may be something for the public sector - any civil servants out there?

Your friend could challenge their employer to get them to the workplace in a cheaper and equally efficient way. But in the bigger picture, "take it or leave it" is a feature of our straitened times  - for both employer and employee.

HTH

K
Title: Re: Fuel Exspences - Mileage allowance
Post by: Sixstring on 10 May 2010, 15:21:34
I currently get 20p per mile, and a monthly "car allowance" covers running the 3.0 miggy easily.
Title: Re: Fuel Exspences - Mileage allowance
Post by: 2woody on 10 May 2010, 15:42:19
I get 14p per mile.

Mind you, you can apply to HMRC to get refunded the difference between what you actually get and the "statutory" 40p
Title: Re: Fuel Exspences - Mileage allowance
Post by: I_want_an_Omega on 10 May 2010, 16:37:51
You also need to be aware that the milege rates are set by HMRC and reviewed twice a year.

If you do use your car for work then regardless of how much you get paid per mile, your insurance needs to cover business use.

Your employer is also supposed to submit VAT receipts to HMRC - so  - they may ask for fuel receipts when you put your expense claim in. Not all employers ask - but they are entitled to. This particular area has been tightened up in the last year or so.

HTH
Title: Re: Fuel Exspences - Mileage allowance
Post by: TheBoy on 10 May 2010, 16:57:07
most places have 2 rates - one for a company provided car (or car allowance cars), and another for private cars.

I think I get 37p for private car, that doesn't cover running costs and business insurance extras :(.  Those with company cars get 15p iirc at our place
Title: Re: Fuel Exspences - Mileage allowance
Post by: zirax on 10 May 2010, 19:41:10
It's 40p for the first 10,000 then 25p /m there after.

I am pretty sure you can claim the difference between what your employer pays and the limit. A friend of mine has recently done this (I'll ask him what he did and report back).
Title: Re: Fuel Exspences - Mileage allowance
Post by: I_want_an_Omega on 10 May 2010, 20:29:11
Those are the HMRC rates. And you can claim back the difference via the tax man each year via your tax return.

TB's right about the rates not covering the true cost.

Case in point - i've just bought a decent set of tyres (225/55/17's)for my company car:

Michelins = £800
Conti's = £560

17300 miles driven = 4.6 ppm for the Michelins or 3.2 for the Contis.

Soon mounts up ........
Title: Re: Fuel Exspences - Mileage allowance
Post by: redelitev6 on 10 May 2010, 21:16:07
Quote
Just talking to some one who is only getting 27p per mile, and told to take it or leave.
:o Gulp-we get 49p per mile and it's still not enough!
Title: Re: Fuel Exspences - Mileage allowance
Post by: I_want_an_Omega on 10 May 2010, 21:18:35
And anything above 40ppm is classed as taxible income .....