Business Mileage payments

Re: Business Mileage payments

Michael Woodhouse — Fri, 31 Jan 2014 22:56:50 GMT

Rob - the OP has a company car. They are just reimbursing business miles for fuel.

Re: Business Mileage payments

Rob Loxley — Fri, 31 Jan 2014 20:05:30 GMT

[quote user="Cat Henstridge"]It is 40p a mail and I thought that was pretty standard[/quote]

HMRC increased the allowance to 45pm from 2011/2

I think the confusion is sometimes not understanding that 45p is the max your employer can reimburse you without you paying tax on the excess. They could happily decide to give you less, however is they are barely paying for the fuel (let alone insurance, VED, servicing, repairs) then I'd suggest a discussion needs to be had.

Re: Business Mileage payments

Cat Henstridge — Wed, 29 Jan 2014 14:07:46 GMT

I pay myself business mileage through my limited company for my locum work. It is 40p a mail and I thought that was pretty standard. Maybe you'd get less if it was a company car but not if it is your own. The charge is to cover both the petrol and the wear and tear on the car.

A friend of mine worked for a large multi-branch vets in the Midlands and drove hundreds of miles every month between clinics. They also paid her a very small amount that didn't even cover the petrol and weren't at all interested in changing things when she pointed out how unfair it was. She didn't stay there long!

Re: Business Mileage payments

Michael Woodhouse — Wed, 29 Jan 2014 09:45:38 GMT

I run our cars through the business. Much simpler. You pay benefit in kind tax on about £500. So all the fuel you can use in a year costs you either 20% or 40% of that...........

I just couldn't be arsed to measure milage.

Re: Business Mileage payments

Bob Russell — Wed, 29 Jan 2014 09:09:49 GMT

The company now owns and pays for running my car but I pay for fuel and 'claim' back 15p per mile for practice use. Small animal only but I do quite a lot of 'running' around on practice business.

Re: Business Mileage payments

karen jones — Wed, 29 Jan 2014 08:16:03 GMT

Our accountant has just told us that our assistants should pay for all their fuel in their cars and that we should reimburse them for their business mileage rather than paying us for for fuel and them paying us for personal mileage . If they aren't keeping correct records of their own mileage then the tax people can ask for all the tax money back if they don't believe the assistants records. One practice had to pay £19k as they can go back 6 years. Not sure how we are going to sort this out

Re: Business Mileage payments

Gillian Mostyn — Tue, 28 Jan 2014 23:09:20 GMT

[quote user="An On MRCVS"]We are paid business miles only as we are a small animal practice[/quote]

How are clocking up those miles though? (Don't forget that the commute to and from work doesn't count). Most small animal vets do very little - unless you are moving between sites or doing a lot of home visits???

Re: Business Mileage payments

Stephen Courtney — Tue, 28 Jan 2014 23:03:15 GMT

When i had a company car, we were given a company fuel card, and had to keep a mileage book. Private mileage was deducted from salary, business miles were not. but the car was a taxable benefit.

Now I have my own car, i pay for everything, keep a mileage record and submit a claim for business mileage each month.

This is paid at the standard tax free HMRC rate of 45p per mile. Given the costs of insurance, road tax, maintenance and finance ( a moot point as my car is paid off and while getting older and shabbier, is perfectly serviceable for some time to come i hope) I'm probably breaking even.

Re: Business Mileage payments

Michael Woodhouse — Tue, 28 Jan 2014 21:40:39 GMT

If you run your own car the 45p per mile covers all running costs including depreciation, servicing etc.

If the employer provides the car and only pays fuel for business use then what you are getting seems fair if they are taking the hit with depreciation, servicing, repairs insurance.

Re: Business Mileage payments

An On MRCVS — Tue, 28 Jan 2014 21:09:37 GMT

We are paid business miles only as we are a small animal practice, and being paid business miles only and claiming it back means I (and my employer) are not taxed as heavily. Looking at the information I have been given, the reimbursement of mileage done has been done as a fuel repayment rather than a mileage payment.

It just seems a remarkably small amount, considering I fill up my car every 7-10 days with £40-45 of petrol to only get back £50-60 per month. Or am I just being greedy?

Re: Business Mileage payments

Mark Hedberg — Tue, 28 Jan 2014 20:55:44 GMT

[quote user="An On MRCVS"]

I was just wondering whether anyone had any information on how much an employee should get reimbursed per business mile when using a company car? Recently my fuel repayments seemed to have decreased and when I queried this, I was given a breakdown. I did 566 business miles between 18th Dec 2013 and 17th Jan 2014, and was paid £53.72, which works out at about 9.5p per mile.

This has been calculated using the theoretical fuel efficiency of my car as stated in the manual, then gallons of fuel used with business miles, giving final amount to be paid. However, the actual fuel efficiency of my car is a lot less.

Is there a minimum payment for business miles, or because it is a company car can my employer decide whatever mileage payment they want?

[/quote]

Well, if you've got a company car; are they supposed to be paying your fuel money? (eg straight reimbursement of receipts or a company fuel card.) That tends to be the simplest (and unless I'm mistaken, feel free to correct me) most common solution. You'd get the 45p per mile if it's your own car, of course, but with a company car, why would they pay your mileage instead of fuel?