marzman Posted June 10, 2014 Posted June 10, 2014 Until recently i've always had uneconomical cars such as the Zed or the RRS etc, and i've always *just* broken even with my business mileage allowance (25p per mile). All my colleagues drive diesels and were pocketing quite a few £££ a year in profit from the extra they made on their journeys. Around 6 months ago the number of miles i was doing increased due to a number of new clients, and so i decided to join the diesel club buying a BMW 320d, pocketing roughly £100 a month in profit! However, we were informed last week that our company has now changed it's business mileage policy (in line with the HMRC), and from now on will only be paying 14ppm for <2000cc Diesels (mine is 1995cc), and 17ppm for > 2000cc. Alternatively, if i have a >2000cc Petrol car they will pay 24ppm. So what that boils down to is i must own a diesel which achieves approx 46mpg in order to break even on a work trip, or a 26mpg petrol car (assuming using regular unleaded, not super, and dependent on the price of fuel of course). So to me this is a no brainer.... i should ditch the derv and get a fun petrol again! A zed would almost work, except for needing super unleaded, but this is a negligible difference. Also the sweetener - the company gave me an £800 increase to my car allowance to cover the shortfall in 'profit'... so essentially they've just leveled the playing field between owning a petrol and a diesel, and given me an £800 a year bonus too! The only downside is that i cant get another Diesel RRS as i'll be massively out of pocket owning that... but stupidly i might be better off if i got a petrol one, but i need to go away and check the sums... 1 Quote
370Ad Posted June 10, 2014 Posted June 10, 2014 (edited) Do you know you can claim the difference in your companies rate and the 45p rate as mileage relief from the HMRC each year. So my company pays 26p, and since I am 40% tax payer I can claim 40% of the difference in ppm each year. Works out about 300 for me. Just keep a spreadsheet and cash in at the start of April. Edited June 10, 2014 by 370Ad Quote
marzman Posted June 10, 2014 Author Posted June 10, 2014 Do you know you can claim the difference in your companies rate and the 45p rate as mileage relief from the HMRC each year. So mine company pays 26p, and since I am 40% tax payer I can claim 40% of the difference in ppm each year. Works out about 300 for me. Just keep a spreadsheet and cash in at the start of April. Yep. I've never bothered with it until this year, but i submitted a claim dating back 3 years this May and it's worth about £700 i think. 1 Quote
Commander Posted June 10, 2014 Posted June 10, 2014 Do you know you can claim the difference in your companies rate and the 45p rate as mileage relief from the HMRC each year. So my company pays 26p, and since I am 40% tax payer I can claim 40% of the difference in ppm each year. Works out about 300 for me. Just keep a spreadsheet and cash in at the start of April. I do this every year - it's the only thing that let's me drive the Zed as my daily really. 1 Quote
marzman Posted June 10, 2014 Author Posted June 10, 2014 How long does it take for the payment to come through? This is my first year submitting it... Quote
Commander Posted June 10, 2014 Posted June 10, 2014 I do mine under self-assessment online - doesn't take long - a month maybe? I've been doing it for a while now though so they just change my tax code instead these days. Quote
davedutch Posted June 11, 2014 Posted June 11, 2014 As above, but you only get 45ppm up to 10, 000 business miles then it drops so watch how many miles you do and claim correctly or hmrc will be down on you. Quote
Flex Posted June 11, 2014 Posted June 11, 2014 How long does it take for the payment to come through? This is my first year submitting it... Most of my clients get it through within 2 weeks, sometimes delayed if HMRC decide to do some security checks. Quote
Will370z Posted June 11, 2014 Posted June 11, 2014 i used to get paid 50ppm in my old job, used to make a nice tidy profit each month while visiting clients Quote
370Ad Posted June 11, 2014 Posted June 11, 2014 i used to get paid 50ppm in my old job, used to make a nice tidy profit each month while visiting clients Never heard of anyone being paid of the rate before. Bet you loved that! Quote
mouthwash Posted June 11, 2014 Posted June 11, 2014 (edited) You should try the NHS, 60 odd p a mile.. Edited June 11, 2014 by mouthwash Quote
marzman Posted June 11, 2014 Author Posted June 11, 2014 Lucky buggers. At our place if you dont have a car allowance you get 40ppm, but as i do thats why im now getting shafted with 14ppm. Quote
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