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Discussion Starter · #1 ·
I work in small company. Less than ten people.

I use my personal car for business use to meet Customers. On claiming mileage, I have been been asked to make a claim for my MG ZS EV. The company have no idea of mileage rate. I have looked on the internet for rates, but can only find the HMRC Company Car mileage.

Does anyone claim mileage on their on personal car for business and if so what rate per mile?

Thanks!
 

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Ioniq 38kwh 2020
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I work in small company. Less than ten people.

I use my personal car for business use to meet Customers. On claiming mileage, I have been been asked to make a claim for my MG ZS EV. The company have no idea of mileage rate. I have looked on the internet for rates, but can only find the HMRC Company Car mileage.

Does anyone claim mileage on their on personal car for business and if so what rate per mile?

Thanks!
Isn't it 45p a mile up to 10,000 miles pa ? The company can pay more, but any excess over 45p a mile would be taxable.

Companies can pay less, in which case I believe you can claim the difference if you do a tax return, if it's worth your while.
 
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Yes, the rates are 45p / 25p for use of a private vehicle and it doesn't matter that its EV - same rates.

We haven't travelled for business since covid started but over time when we do get back on the road, It will be interesting to see if my company start wanting to reduce the rates they pay when an employee has gone down the EV route. If they try, they will be looking for a replacement consultant.
 

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Discussion Starter · #5 ·
Thanks.

For many years I have used a lease car ICE and have claimed mileage via 'expenses' (circu 18p a mileage) and then had to complete self assessment each year to get the rest to 45p a mile.

That said that was working for a company with 10,000+ employees and a strict business expense system.

Ideally I would like to avoid self assessment for just mileage so would like to get the mileage just from the company. That said, boss is reasonably smart enough to work out 45p a mile I am 'well in pocket'
 

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Thanks.

For many years I have used a lease car ICE and have claimed mileage via 'expenses' (circu 18p a mileage) and then had to complete self assessment each year to get the rest to 45p a mile.

That said that was working for a company with 10,000+ employees and a strict business expense system.

Ideally I would like to avoid self assessment for just mileage so would like to get the mileage just from the company. That said, boss is reasonably smart enough to work out 45p a mile I am 'well in pocket'
The company my wife works for pays 25p a mile and the remaining 20p is claimed on her tax allowance.....
 

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The company my wife works for pays 25p a mile and the remaining 20p is claimed on her tax allowance.....
Think I'd insist on a hire car if they are only paying 25p!
 
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Thanks.

For many years I have used a lease car ICE and have claimed mileage via 'expenses' (circu 18p a mileage) and then had to complete self assessment each year to get the rest to 45p a mile.

That said that was working for a company with 10,000+ employees and a strict business expense system.

Ideally I would like to avoid self assessment for just mileage so would like to get the mileage just from the company. That said, boss is reasonably smart enough to work out 45p a mile I am 'well in pocket'
The advisory rates for fuel are 12p Vs 4p for ICE Vs EV, so 37p / mile would seem reasonable.
 

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Ideally I would like to avoid self assessment for just mileage so would like to get the mileage just from the company. That said, boss is reasonably smart enough to work out 45p a mile I am 'well in pocket'
If you don't otherwise need to do a tax return because you are not in the higher rate tax band or have other sources of income, and therefore only need to claim your business expenses then there is a specific form you can complete for this purpose rather than do a full tax return. I think, from memory, it is a form IR35.
 

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Think I'd insist on a hire car if they are only paying 25p!
What? The car costs 2p a mile in fuel...... She also got the same when she drove a E Class Merc estate, that didn't work out so well, hence the reason we changed cars...

You also missed the part where the Gov balances out the remaining 20p on her tax code....
 

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What? The car costs 2p a mile in fuel...... She also got the same when she drove a E Class Merc estate, that didn't work out so well, hence the reason we changed cars...

You also missed the part where the Gov balances out the remaining 20p on her tax code....
Seeing as my lease works out at 60p a mile plus electric I don't think it's good deal and any excess mileage could be 10-20p a mile. That's a terrible rate if you have an ICE though.
By the way, the government don't "give" you the extra 20p.
 

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You also missed the part where the Gov balances out the remaining 20p on her tax code....
No they don't. You get a tax rebate on that part being seen as a cost of business. So for every mile travelled where the company are paying 20p too little per mile, the 20p is seen a tax deductable business expense, so the govt reduce your tax bill by 4p if you are a basic rate taxpayer, or 8p at higher rate. So your wife is getting 29p per mile if she is a basic rate taxpayer or 33p per mile if she is a higher rate taxpayer. Not the full 45p. Common misconception.
 

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Seeing as my lease works out at 60p a mile plus electric I don't think it's good deal and any excess mileage could be 10-20p a mile. That's a terrible rate if you have an ICE though.
By the way, the government don't "give" you the extra 20p.
The car belongs to the family, I am not expecting her firm to pay for the few thousand miles a year she uses it for work.... That would then become BIK.....
BTW my car has cost about 16p a mile in depreciation over the 9 years I have owned it so we are still quids in....
 

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No they don't. You get a tax rebate on that part being seen as a cost of business. So for every mile travelled where the company are paying 20p too little per mile, the 20p is seen a tax deductable business expense, so the govt reduce your tax bill by 4p if you are a basic rate taxpayer, or 8p at higher rate. So your wife is getting 29p per mile if she is a basic rate taxpayer or 33p per mile if she is a higher rate taxpayer. Not the full 45p. Common misconception.
I never said she was getting 45p, I said its adjusted on her tax code.....
 

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I never said she was getting 45p, I said its adjusted on her tax code.....
You said the govt balances out the remaining 20p on her tax code. I took that to mean you thought the govt paid the remaining 20p in reduced tax. If that's not what you meant, apologies for the assumption.
 

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You said the govt balances out the remaining 20p on her tax code. I took that to mean you thought the govt paid the remaining 20p in reduced tax. If that's not what you meant, apologies for the assumption.
I didn't say they give her 20p a mile, I said they balance out the difference..... ie the 20p she doesn't pay tax on..... Stop reading things into what I said..............
 

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The car belongs to the family, I am not expecting her firm to pay for the few thousand miles a year she uses it for work.... That would then become BIK.....
BTW my car has cost about 16p a mile in depreciation over the 9 years I have owned it so we are still quids in....
Fair enough if you're happy with the arrangement. It only becomes a BIK issue if the firm pay over 45p though. Which is a far fairer rate for business usage especially as you have to make sure your car is insured for business use. Which will often add to your insurance premium too.
 
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My company pays a car allowance and then treats it as a company car, which imho isn’t reasonable because it isn’t a company car… but oh well, so mileage rate is 4p a mile. This isn’t great because it’s actually about what it costs for me to charge at home, so once I factor in any rapid charges when travelling it isn’t covering fuel costs, it’s about 50% off!

I’d love to know how HMRC arrived at 4p per mile. It seems to assume 15p/kW.
 

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My company pays a car allowance and then treats it as a company car, which imho isn’t reasonable because it isn’t a company car… but oh well, so mileage rate is 4p a mile. This isn’t great because it’s actually about what it costs for me to charge at home, so once I factor in any rapid charges when travelling it isn’t covering fuel costs, it’s about 50% off!

I’d love to know how HMRC arrived at 4p per mile. It seems to assume 15p/kW.
Unless your car allowance is absurdly over generous to make up the difference, I think that scheme is taking the piss and I would be looking to move on.

In my last job several years ago, I was on a scheme which was fairly typical, £450 a month, then mileage at a rate of 40p (4000 miles), then 22p (next 14000 miles), then 18p (over 18k miles).

Then we were taken over and as part of the standardisation of terms and conditions, were moved to the parent company's scheme which was £650 a month, and mileage at 14p per mile. We calculated that, up to a reasonably high number of miles, we were actually better off overall on the new scheme, but it became a bit grating because it was around the time that fuel went up to around £1.40 a litre and the 14p a mile was barely covering the cost of fuel - any further rise and we would have been making a loss to travel to sites. But the scheme was based on the idea that the large monthly allowance was to cover leasing a car with everything covered except the fuel and the 14p just needed to pay the fuel. I could see the logic.

But your scheme is just wrong. You are clearly out of pocket every time you have to fast charge. The 4p per mile is supposed to be for company cars presumably on the basis of covering only your home charging on the assumption that fast charging is covered on a business card? In an ICE car, you'd probably have a fuel card and the rate for mileage is to calculate backwards, what you owe them for your private mileage.

You are being stiffed all ends up. Don't know how they get away with that. When you think about it, based on a set of tyres costing around £600 and lasting 40k miles, the cost of wear and tear on the tyres is 1.5p per mile before you even start to pay for fuel.

My company haven't yet hinted at playing silly buggers by reducing the rates they pay when you drive an EV. I wouldn't put it past them though. If they did, I'd leave. And if I couldn't find a suitable alternative role, in the meantime, I'd go back to ICE and email the company's environmental policy committee and tell them why. I'd probably just swap cars with the wife and use her ICE on business trips. :)
 

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The scheme is taking the piss, most definitely. It’s worked out pretty well over the last year but only because I haven’t been on site much.
 
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