Business miles - pence per mile? (UK)

[Steeeeve]

Hi people,
Just a quick question.
Mileage claims HMRC guidelines
My place of work has just seriously screwed me over, did some work mileage and the rate they are allowing me to claim is 8 Pence per mile?! On querying it I have been told it goes down to 4p per mile from 1stSept?!
I've used £40 in fuel and based on these rates will make a significant loss on this claim alone... Anyone had any experience with mileage rates and the PHEV?

On a side note they have advised thus affects electric cars... Which my v5 document describes my car as.
Steve

 

[Tipper]

It's a Hybrid as it has a petrol engine too!

Government says:
Advisory Fuel Rates from 1 June 2018
These rates apply from 1 June 2018. You can use the previous rates for up to one month from the date the new rates apply.

Engine size Petrol - amount per mile LPG - amount per mile
1400cc or less 11 pence 7 pence
1401cc to 2000cc 14 pence 9 pence
Over 2000cc 22 pence 14 pence
Engine size Diesel - amount per mile
1600cc or less 10 pence
1601cc to 2000cc 11 pence
Over 2000cc 13 pence
Hybrid cars are treated as either petrol or diesel cars for this purpose.

 

[Dusz]

I assume that you have a company leased car and have pay for the fuel and claim back the business miles.

The HMRC site is quite clear on the guidance rates that are payable.

Depending on you mileage claim, even 14 p per mile (current rate from June 2018) may not cover your fuel costs.
If the journey is up to around 100 miles you will most probably recoup the fuel cost however over that mileage you are likely to get 36-38 mpg and that then is below the average mpg that HMRC assumes you can achieve and you will be in deficit.

Note the HMRC mileage rates are reviewed only every 3 months. Often the rates have been lowered just as the cost of fuel has been increasing so for the next three months it is quite easy to be in a loss situation. The other way is to either fudge the mileage (depends on how vigilant your company/HMRC are likely to be) or talk to your company and get them to cover the cost of fuel used if it is greater than that claimable according to the HMRC guidelines. Note, a company does not have to follow the HMRC guidelines. However, if they pay more then you could be liable for tax as they deem that you have received a benefit.

if your car is a private car that has been used for business then I think that the allowed HMRC rate is 45 p per mile up to a certain mileage which takes into account other running costs. Over that mileage the rate reduces to half as the cost of insurance and road fund licence has been deemed to be recouped.

 

[Steeeeve]

Thanks for the detailed replies, pretty much in line with my though process tbh
The car is my car, I do receive a car allowance for the vehicle (which is taxed as part of my salary)
The joke is, the guy sat next to me with a 5l mustang gets 22p per mile! Lol.
I've queried it let's see what comes back. I bought the car primarilly to reduce my commute costs and environmental impact, when I am visiting customers... They don't tend to be within that 20 mile range lol.

I won't drop this until it is sorted though!!!

Cheers
Steve

 

[user 816]

Hi people,
Just a quick question.
Mileage claims HMRC guidelines
My place of work has just seriously screwed me over, did some work mileage and the rate they are allowing me to claim is 8 Pence per mile?! On querying it I have been told it goes down to 4p per mile from 1stSept?!
I've used £40 in fuel and based on these rates will make a significant loss on this claim alone... Anyone had any experience with mileage rates and the PHEV?

On a side note they have advised thus affects electric cars... Which my v5 document describes my car as.
Steve

Is it your car or their (company) car?

If theirs, they have to pay you 14p per mile (your V5 can't say its an electric car unless its wrong). If you find fuel at about 129p/litre you need to do 41mpg to break even.

The rate rises in September to 15p (it always lags behind) restoring the 'target' MPG to 38, which I have no problem doing in my PHEV over any distance.

If its your car, they have to pay you 45p per mile (up until the first 10,000 BUSINESS miles per year)


As a side note, the rate for over 2000cc is 22p per mile. 2019 model drivers with its bigger 2400cc engine who are reimbursed by this method will be rolling in money!!

They only need to do 26mpg to break even, if the 2019 is a bit more efficient as claimed, and using cheap electrical miles too, some drivers will be pocketing nearly twice as much money as the car is actually costing them to fuel, all legally and tax free.. very tempting!

 

[Tipper]

The 45p rate for your own car is the maximum HMRC allow tax free.

Your company can give you what they like/agree with you, over 45p and you will incur tax.

 

[user 816]

The 45p rate for your own car is the maximum HMRC allow tax free.

Your company can give you what they like/agree with you, over 45p and you will incur tax.

true, but too low and I would be telling them to either hire me a car or I ain't going!

Does sound like they are confusing his car for an EV, as 4p (from September) is the advisory rate for an EV being introduced.

Even so, AFR's are too low for personal car use. Hopefully he has put them straight.