A friend is looking to do some freelance work, which would necessitate travel to client sites. He wants to know a reasonable mileage rate to charge.

Any thoughts? Is the 40p per mile rate that most employers offer a reasonable starting position?

Oh, and does it make a difference if cycling or driving?

Thanks!

I think 40p is the recommended amount. My friend is a vicar and gets milage for her cycling, but it's less than that, can't remember what though, sorry.

You can give any amount you want, but tax is payable on anything over 40p.

No idea about cycling but I wouldn't give an employee 40p a mile for it!!!

20p per mile for cycling I think. It depends if he gets travelling time or if this needs to be included in the rate. Is he paid daily or hourly for work, as I said if hourly is travel chargeable?

Personally on a day rate go for 40p/mile.

Don't forget that what he charges the client and pays himself are different so normally charging/getting more than 40p/mile means you are taxed on the amount over this, however as self employed he can claim what he likes and as long as he only pays himself 40p/mile (taking the rest as part of his dividend/salary) he avoids this.

Cheers all.

40p in the car
20p on a bike

http://www.hmrc.gov.uk/manuals/senew/SE31240.htm

in terms of being paid for the travelling time on top of the expense claim, they would have to negotiate that with the client. I wouldn't suggest charging the actual cycling time, maybe just the equivalent car journey so it doesn't look like a p!ss take.