Query regarding car mileage rates...

Teamhar

Hi,

With the current price of fuel, I'm noticing that the mileage rates I'm getting from my company aren't quite cutting it and I'm trying to find out whats what and how should they be calculated. I tried to find out about this before but asking questions of my employers just led to them telling me I was calculating correctly where I now think I'm being had. I'm stupid and should have sussed this out a long time ago, I know. I also don't have a written contract, rarely get pay slips and don't get sick pay but thats another story altogether! And I'm in so-called "professional" position! Wonder should I just sue?!

I drive a 1.8L Nissan Almera and every 2 to 3 weeks I file an expenses sheet with the guy who handles payroll in our office. I was told that I get 78c for the first 100 miles, then 40c for each additional mile so I calculate for him accordingly and I get paid. So far this year I've driven just short of 5,000 miles on company business. Maybe I am getting a good deal, I just don't know!

I've read up on Civil Service rates etc, but finding it hard to find clear answers. Any advice would be much appreciated.

Thanks.
T.

leeroybrown

Someone working for a private company is entitled to whatever mileage rate they agree with their employer. The only constraint on your mileage rate is that it becomes taxable if you get more than the civil service rates. As you point out you get 78c for the first 100 miles and 40c per mile thereafter. Your rate is quite a bit less than the civil service rate but that's a matter for you and your employer.

You're supposed to be given a written copy of the terms and conditions of your employment. After 13 weeks working without those terms you're working under an implicit contract. They should be giving you pay slips. There is no legal entitlement to sick pay from your employer.

Teamhar

Hi, thanks. I was hoping that someone who wasn't working in the civil service could give me and indication of what rates they're getting and how they are calculated. None of my friends are in a similar position so can't advise and I don't have an accountant or other financial advisor.

I'm aware that sick pay isn't a right, but I believe that having a company's policy in writing is a legal requirement. I'm annoyed because its the first company I've worked for that didn't offer sick pay and I think its the height of cheapness, considering the fact that my colleagues and I do a lot of unpaid overtime outside of hours, be it travelling across the country or early starts/late nights. A bit of latitude would be good for morale. There are only 3 of us under two management which is why everything is a bit casual in terms of contracts, payslips etc. However, when it comes to being sick we don't take the piss. I'm just venting here- putting down on paper reasons why I want to quit!

Thanks,
T.

Serafijn

I work for a large UK-based company and get 52c per mile, regardless of the total amount. This hasn't changed at all following the increases to fuel costs and is standard across the company.

Any help?

Borzoi

leeroybrown wrote: »

The only constraint on your mileage rate is that it becomes taxable if you get more than the civil service rates.

Not correct - in general a scheme must be assessed by the revenue. The default position is that the civil service have the only public approved mileage scheme - and so everybody uses it as a benchmark. So most companies pay at the CS rate, or more usually - less. I've seen what I would consider more generous schemes also approved by Revenue, but AFAIK they do it on a case by case basis. I know it seems like I'm nit picking, but it is possible to do better than CS rates and pay no tax on it.

kayos

Borzoi wrote: »

Not correct - in general a scheme must be assessed by the revenue. The default position is that the civil service have the only public approved mileage scheme - and so everybody uses it as a benchmark. So most companies pay at the CS rate, or more usually - less. I've seen what I would consider more generous schemes also approved by Revenue, but AFAIK they do it on a case by case basis. I know it seems like I'm nit picking, but it is possible to do better than CS rates and pay no tax on it.

+1

As my accountant said best thing is pay the exact same as the Civil Rates and avoid having the tax man having to approve it.

Years ago the last company I used do any sort of regular milage for it was 54cent per mile if I remember rightly. Looking at the civil service rates at the time annoyed me! But still you are going to make money from it at those levels if you are covering any distance. Hell if its a long trip get public transport and say you drove there. Not like personal cars have their clocks read to make sure the milage is actually being done.

granturismo

One public sector rate is 54c for the first 64Km and 27c for the remainder of the journey.

kayos

Current Civil Service rates

Travel Per year		<1200cc	       1201 &#8211; 1500cc		>1501cc

Up to 6437km		52.16cent	61.67cent		78.76cent
Over 6437km		28.29cent	31.49cent		37.94cent

Those are the effective rates at the moment and came into place on the 01/07/08

nesf

kayos wrote: »

As my accountant said best thing is pay the exact same as the Civil Rates and avoid having the tax man having to approve it.

Yeah we got similar advice from our accountant on it.

gabigeist

Your rate seems fine. I've been arguing with my company about this for months as we only get 41c per mile. It covers petrol costs but not running costs.
I drive a 1.8 and do 5,000 personal miles and 4,000 business miles per year. To recoup (4000/4000+5000) 4/9ths of my total car costs in the year, I need to get 71c per mile off my employer.
To summarise, I subsidise, you break even and civil servants profit.

gabigeist

Hey again

I was looking for some ammo for my next attack on our miserable rate and found this site http://www.eta.co.uk/car_cost_calculator
Obviously change the £ for € but it gives an accurate indication of actual costs per mile if you're using your own car for work trips. I've pasted mine below as an example.
Good Luck!


ConditionsFuel typePetrol (ultra low sulphur)Car Purchase Price£5,000No. of years car kept3Fuel Economy15.00 miles/gallonFuel Price126.00 p/litreAnnual Mileage10,000 miles/yearFixed CostsVariable CostsAnnual Depreciation£1,000Fuel Costs£3,797Capital/Borrowing Costs£250Servicing Labour£276Insurance£650Repair Costs£164Road Tax Disc£530Tyre Replacement£81Breakdown Cover0Parking Charges0MOT Test Fee£25Toll Charges£20Garage Costs0Driving Fines0Parking Permit0Congestion Charge0Other0Other0Fixed Total£2,455Variable Total£4,338TotalsRunning Cost£6,793 per yearRate per mile68 pence/mile

kayos

Fuel Economy15.00 miles/gallon

What sort of car are you driving? I have a car addicted to fuel and the only time I would be this low is if I was driving bloody hard with lots of sharp acceleration and braking i.e. on a race track (where I actually get about 8mpg). Yet I take that out on the road and combined I get about 30mpg. Thats a 1.8 20VT engine.

leeroybrown

gabigeist wrote: »

Fuel Economy15.00 miles/gallon

I'm with kayos on this one. I drive a car with a very thirsty 1.8L engine with mostly of urban mileage and I can still manage 20 mpg. When you factor in longer trips my average mileage is over 25mpg. While your rate of 41c does seem to be very low you obviously need to change your car or your driving style.

The_Conductor

gabigeist wrote: »

To summarise, I subsidise, you break even and civil servants profit.

If you factor in the annual costs associated with car ownership, and don't drive a lot of private miles- then the civil service rate doesn't come anywhere near covering its costs- particularly with larger cars, with higher tax, insurance, maintenance etc.

Run the figures through that UK calculator and see for yourself.......