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What is the correct/average mileage claim in the workplace?

I am about to submit my first expenses claim at work and the petrol allowance is 25pence per mile. Is this average or below the norm? My car eats petrol and 25p just doesn't seem very much. Any thoughts very welcome.

sssg4 Tue 01/07/08 13:51

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Nik315
Tue 01/07/08
13:54

I don't know about in the workplace but I am self employed and claim 40p per mile

merejeans
Tue 01/07/08
14:20

I do some voluntary work, and 40p per mile is allowed for it.

merejeans
Tue 01/07/08
14:21

I believe the AA have a scale somewhere, as to what is fair

Skyline D
Tue 01/07/08
16:12

The maximum allowed under the 'Fixed Profit Car Scheme' is 40p per mile. If your employer has permission to use that then they can pay you up to 40p per mile without you incurring any further tax liability. They can pay more if they wish but you'd be taxed on it.

That presumes the car is your own. If it's a company car but you provide the fuel then the expenses allowable are much lower, between 11p and 19p per mile depending on the engine size.

Thoughts? It IS low. Even 40p per mile is low these days. The rate has been pegged at 40p per mile since April 2002. Petrol has virtually doubled in price since then! I think it's long overdue an increase but nobody seems to be pushing for it. 25p per mile is particularly stingy. Unless you have an especially economical small car you're probably losing money every time you do a business mile.

buildersmate
Thurs 03/07/08
17:28

The only additional note to Skyline's excellent answer is that the 40p permitted under HMRC rules applies to the first 10000 company business miles in each tax year - after that it is 25p.
There is actually nothing stopping the employer paying more - its just that the employer has to pay employers and employees NI on any extra payment over 40p/mile.
25p per miles is particularly stinjey - I've suggested on here before that employees should refuse to make their car available to their employer if that's all that is being offered. You will not normally find that it is an employment condition that one provides one's vehicle for employer use - such employers' are extracting the urine.

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