Viewing 18 posts - 41 through 58 (of 58 total)
  • Anyone use their own car for work?
  • cheshirecat
    Free Member

    £6300 per year allowance, taxed as income.
    Insurance up to £1200 paid, including breakdown cover.
    Fuel card for personal and private fuel, taxed as income.

    The trick in this situation is to document business mileage and claim tax relief at 40% on 40p per mile (do less than 10k miles). This tends to pay for the tax on the fuel card, so free personal mileage.

    Similar caveats on car type and age as other posters.

    coffeeking
    Free Member

    your model is distorted as you are paying off the capital in the car in two years. This takes no account of the residual value of the car.

    Bingo.

    Unless your car is worthless at the end of the 2 years, you’re totally mis-accounting the value and your losses.

    Personally I struggle to come anywhere near as high as 25p a mile running costs on my car, but I don’t NEED it for business and I have a couple of spares so I can see why you might have requirement of RAC etc.

    Spongebob
    Free Member

    The trick in this situation is to document business mileage and claim tax relief at 40% on 40p per mile (do less than 10k miles). This tends to pay for the tax on the fuel card, so free personal mileage.

    I really doubt this. Can you show your figures?

    When i last looked at the tax on a fuel card (10 years ago when fuel was 78p/l). I calculated that i would need to do IRO 14000 private miles to break even with my 50-65mpg 1.9l diesel. The fuel card was a big chunk of the tax and definitely a deal breaker if imposed alongside a car allowance.

    The best scenario is for employers to pay the maximun mileage allowance (40p and 25p), offset by a reduced monthly allowance to mitigate your tax liability. This would be cheaper for them and you, assuming you don’t then go and notch up extra business miles purely for the sake of the extra money.

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    steveh
    Full Member

    Surely what you’re actually getting from your figures is a car for yourself for private use for £1k a year? Many people would think this a very good deal if driving a newish car, it’d certainly cost you more without your mileage allowance!

    iain1775
    Free Member

    That’s a good allowance iain1775. What list value of car do you run?

    I’ve estimated you get about £7.5k in your pocket, which should cover full running costs of a half decent car.

    Really?
    How do you work that out?
    I pay tax at 40% on the 6500
    Fuel costs around 11pence per mile, I get 17p (difference to 40p just affects next years tax code)
    How do you end up with me having 7.5k in pocket at end of year?

    But yes I am much better off now that i was when I had company car and fuel card. My tax code is far more favourable now

    I got an 11month old Hyundai i30 Premium with 8k miles on clock for 10k. Has more bells and whistles than my old company Beemer used to
    I will pay the initial loan off comfortably from the allowance over 2 years, keep car another 2 whilst raking in the allowance, should get me a decent deposit for next car, when this one will be handed to the wife and her existing car sold
    Im not really fussed by flash cars, been there done that but being company cars I never owned them outright. Happy to run around in this for a few years, it has comfy seats and cruise control, thats enough for me up and down the M6 to Scotland!

    molgrips
    Free Member

    Yeah but Steve he’s paying £1kpa for a car he doesn’t want or need, that’s the point.

    sheldona
    Free Member

    ^ Wot Molgrips says! If I didn’t need the car for work I wouldn’t have one as the missus has a nice Golf GTI which to be frank is a lot more fun than my TDI Passat 😉 We do use mine as its cheaper to run than hers but before this job I didn’t have a car and went out and bought the Passat the weekend before I started.

    clubber
    Free Member

    Does your contract say you have to have a car? If not tell them you’re selling it and won’t be replacing it. They’ll either have to provide you one or negociate… Done.

    sheldona
    Free Member

    Contract?? Thats another thing thats not happened yet!

    cheshirecat
    Free Member

    Spongebob – did 8746 business miles in 2009/10. Claimed tax relief at 40% on 40p x 8746. Worked out as a cash rebate of around £1400, which more than paid for the 40% tax on the fuel used for personal miles

    Mike_D
    Free Member

    I’m not sure that you can have done the sums right. Is a five year old car really depreciating at 15%pa? Not sure I’ve quite grasped the repayment bit either – have you allowed for the residual value after two years? If you’re expecting the mileage rate to pay off the car loan in two years then I think that’s a trifle unrealistic, but you’ll be quids in in year three 🙂

    iain1775
    Free Member

    Mike_D
    Who you refering to? Me?

    uplink
    Free Member

    Fuel card for personal and private fuel, taxed as income.

    The trick in this situation is to document business mileage and claim tax relief at 40% on 40p per mile (do less than 10k miles). This tends to pay for the tax on the fuel card, so free personal mileage.

    So even if you have a fully funded fuel card, you can claim the tax back based on 40p/mile?

    How far back can you claim?

    cheshirecat
    Free Member

    Uplink – the amount I spend on the fuel card is reported on my P60 as untaxed earnings – it is not related at all to business/private mileage. It’s just seen as extra income. It gets entered into my tax return, so I owe the Inland Revenue the tax on the entire amount.

    However, since I do some business miles, I can claim 40% tax relief on 40p per mile (up to 10k miles), which I also enter into my tax return. So far it seems to balance out the tax on the fuel card. I realise this is a huge perk.

    I claimed for a couple of years when I realised I could do this. No idea how far back I could have gone. This is fuel for a private car, I believe the rules are different for company cars.

    project
    Free Member

    Ayatollahofniche – Member
    If you don’t mind me asking what’s are your allowances?
    We don’t get a monthly allowance, just milage allowance which is 40p for the first 10000 and 25p for the rest tax free. I’ve just sat down and done my sums and with the current fuel prices etc I’m loosing over £1k per year. I’m having a meeting in 2 weeks when the md gets back. I just want to arm myself with other suggestions as to what other people are getting.
    Personally I’d like a monthly allowance, then a lower milage allowance.

    Thanks in advance.

    Posted 8 hours ago # Report-Post

    YOU HAVE TOLD YOUR INSURANCE COMPANY YOU USE YOUR CAR FOR WORK RELATED BUISSNESS AND TOLD THEM YOUR ESTIMATED MILES, AND ARE THUS CLASSED AS A BUISSNESS USER, AND SHOULD PAY MORE INSURANCE PREMIUM.

    I HAD TO.

    uplink
    Free Member

    I believe the rules are different for company cars.

    Indeed they are – I misunderstood your post

    I suddenly had thoughts of claiming tax back on 200k miles, but that dream [& the accompanying new bike] has now died 😆

    sheldona
    Free Member

    Project, I’m insured for business use, as said in a previous post.

    uplink
    Free Member

    To answer the OP …………..

    I get £5300 pa car allowance & can claim 16p per business mile off the company + the tax back from the gov as highlighted elsewhere

Viewing 18 posts - 41 through 58 (of 58 total)

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