UK.gov Mileage expence rate

[Pbassred]

Currently 45p a mile for cars and only 24p per mile for Motorcycles.  Aside for it having not been updated since 2013,  who thinks that bikes get twice the mileage and half the servicing cost of cars.  Who's in charge of that?

[Capt Sisko]

The rates were very generous when they were introduced, and even now they represent a good deal if you're a company user, IF you do both quite a lot of miles AND you hang onto the vehicle for a decent length of time. I ran a top of the range Vauxhall Insignia for 7 years from the proceeds of it quite comfortably. As for motorcycles, if you're using one for business you're not going to pick a Hayabusa are you, probably something more like a SV650X. These officially cost £7.5k, but there are deals out there for about £6K.
 

Assuming you do 20k a year for business, @24p per mile, (and unlike cars there is no reduced mileage rate after 10k miles), that equals £4,800 - Multiply that by 3years (so your bike always had a warranty) and you've received £14,400 for something that cost £6K. Okay, you've got to pay for tyres, servicing etc yourself and a 3yr old bike with 60k on the clock won't be worth much, but it ought to be enough for the deposit on the next one.  Throw in you don't get taxed for Benifit in Kind and that doesn't sound like an unreasonable deal to me.

Edited June 7, 2023 by Capt Sisko

[Pie man]

Well the rates for me, are shite. Company car user receives 13p per mile, essential car user 45p per mile first 10K only, cant make nowt on those prices, I have an option to ride my bike for work, but in reality who uses their bike for business and covers 20K a year, I have looked into using my bike, but after paying for insurance, fuel, tax, servicing, tyres, Kit etc, it just isn't worth it.    

Edited June 6, 2023 by Pie man

[S-Westerly]

My employers pay 45 pence a mile regardless of the vehicle used. I go to the office about once a year and the 400 miles each way is a nice lump of cash. I usually fly though so it's a rare event. 

[Mississippi Bullfrog]

I provide my own car and bike for work which covers a huge rural area.  The current rates don't cover the costs so I'm subsiding the expenses out of my own pocket. 

 

The snag is HM Government are unlikely to increase the allowance given the current pressure to reduce car use. But the so called alternatives aren't possible in rural areas. The last bus went 30 years ago. 

[exportmanuk]

14 hours ago, Pie man said:

Well the rates for me, are shite. Company car user receives 13p per mile, essential car user 45p per mile first 10K only, cant make nowt on those prices, I have an option to ride my bike for work, but in reality who uses their bike for business and covers 20K a year, I have looked into using my bike, but after paying for insurance, fuel, tax, servicing, tyres, Kit etc, it just isn't worth it.    

I use either car or Bike for work when required.  I am already paying tax and insurance on them  so the money I am paid ( a lot less then the government recommended figures ) covers fuel.  I use the bike because I can and the car because I need too.  Yes it means I may need servicing a little more often and tyres  but if you are honest how many bikes do the max milage between annual services.

 

[Davidtav]

1 hour ago, exportmanuk said:

I use either car or Bike for work when required.  I am already paying tax and insurance on them  so the money I am paid ( a lot less then the government recommended figures ) covers fuel.  I use the bike because I can and the car because I need too.  Yes it means I may need servicing a little more often and tyres  but if you are honest how many bikes do the max milage between annual services.

 

If you are paid less than the government figures then I think you might be able to offset the difference against your tax liability. 

[Capt Sisko]

20 hours ago, Davidtav said:

If you are paid less than the government figures then I think you might be able to offset the difference against your tax liability. 

Correct. I actually received a cheque from HMRC because of that exact scenario, however the opposite is also true. If your employer pays you more than the HMRC rate you're liable to income tax on the extra.

 

Edited June 8, 2023 by Capt Sisko

[Mississippi Bullfrog]

The tax refund due to expenses is fine, this year I had a refund of just over £500. But they won't cover the shortfall regarding mileage rates. 

 

They used to cover the shortfall because they asked for how much you'd spent on fuel, repairs, insurance,  tyres etc and compared that to what you'd received. 

 

But they changed that to a new system where they will refund tax on mileage you haven't received any expenses for, but not for the shortfall where expenses are claimed but they don't cover the cost. 

 

It makes keeping records easier but you end up being taxed more in a very sneaky manner. 

 

The difference between running a pedal bike and a motorbike is only a few pence in the Allowance. Which suggests they think you can run a motorbike for the same amount as a pedal cycle. 

[onesea]

Most of my works locations like many have horrendous shortage of car parking.  Bikes can fit into the smallest corners, most departments share the same carpark.
I work don’t record and I can never remember which I used when I claim expenses, and my car was automatically set as default.

Edited June 8, 2023 by onesea