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MPG Vs Fuel Costs - Advise Required - WorldTraveler - 09-02-2012 02:30pm
My employer is about to change our car policy and thought I would take a punt in here for some advice....
Currentlly we recieve a car allowance and 20p/mile for every business mile travelled. Company is reviewing the policy and has decided to only pay the HMRC advisory rates, i.e. 12p/mile OR take the option of a fuel card were we have to re-pay the company @ 12p/mil for personal milage.
I average about 30k business miles/year and 5k personal.
Now ... bearing in mind the "real world" MPG we can expect from our shiney new RRE's which option would be more benificial to me, the employee ?
RE: MPG Vs Fuel Costs - Advise Required - ED209 - 09-02-2012 03:26pm
is the HMRC reccomended mileage not 40 odd pence??
I would have thought a fuel card and repaying 12p a mile would be win for you. Thats £6 for every 50 miles and i dont think you would get anywhere near 50 miles from £6 of fuel.
RE: MPG Vs Fuel Costs - Advise Required - Craig_d1 - 09-02-2012 03:28pm
that's what my accountant advised me. I can claim 40p/mile but then I'm self employed and buying my own car, rather than a company car, so guess that reflects a bit of depreciation in there too.
http://www.hmrc.gov.uk/cars/advisory_fuel_current.htm
Says the rate s/b 18p/mile for a diesel with an engine over 2000cc
RE: MPG Vs Fuel Costs - Advise Required - WorldTraveler - 09-02-2012 04:35pm
HMRC allow for 42.5p/mile, however thier "advisory" rate (read:minimum an employer should repay an emplyee) is 12p/mile. If you fall into the Self Assesment bracket for Tax then you can reclaim 42.5p-12p for the fiirst 10K miles thereafter it drops to 25p-12p/mile for business use. If you dont do SA then a P87 can be submitted to HMRC for Tax rebate. So ..... any suggestions ?
RE: MPG Vs Fuel Costs - Advise Required - Craig_d1 - 09-02-2012 07:12pm
1 uk gal is 4.546 ltrs
you drive 35,000miles, 30k work, 5k personal. My sd4 auto had an av of 28mpg...guess you doing a lot of motorway so s/b better than that, lets say 35mpg
so 30k is 857 gal or 3896 ltrs for business
5 k personal is 142 gal or 649 ltrs
price of diesel where we are is £1.42 so business is £5,532 and personal is £921
Total fuel cost £6453
you get 12p/mile so 35000 is £4200, so diff is £2253
or you get a fuel card and repay 12p/mile for personal use which is £600.
Seems to me you go down the fuel card route, as the fuel card is paid for by the company, no?
Or have I worked this out all wrong...never had a company car so I could be doing this all wrong
RE: MPG Vs Fuel Costs - Advise Required - MartinP - 09-02-2012 07:58pm
I would go for the fuel card especially as the mpg is not what we were led to believe and that way you know exactly what your costs are going to be and at approx £50 a month seems very good. It certainly costs me a lot more than that every time I fill up.
RE: MPG Vs Fuel Costs - Advise Required - THEMACS - 09-02-2012 09:19pm
HMRC Rates were you use your OWN car are 45 pm for 1st 10,000 miles then 25p thereafter, you can also claim an extra 5p per mile if you have a passenger!
If you don't get the full HMRC rates you can claim tax relief on the differential
