peza2010 Posted September 7, 2011 Share Posted September 7, 2011 Hi all. A more and more regular occurrence of my work is companys willing to pay fuel/mileage and I want to check to see what sort of ball park I should be in. I run a small car (1.2 litre) which runs on LPG (currently around the 44p a litre Mark) Cheers Link to comment Share on other sites More sharing options...
mutley Posted September 7, 2011 Share Posted September 7, 2011 The normal rate for self-employed people to claim back against the tax man is 40p/mile. This takes into account fuel, running costs, repairs and maintenance, insurance, road tax, etc. Link to comment Share on other sites More sharing options...
boatman Posted September 7, 2011 Share Posted September 7, 2011 Looks like 45 pence per mile is the norm. http://www.taxjournal.com/tj/articles/approved-mileage-allowance-payments-regulations2403 Link to comment Share on other sites More sharing options...
Modge Posted September 7, 2011 Share Posted September 7, 2011 To clear up the 40p \ 45p confusion it's just recently gone up from 40p to 45p I'm lead to believe.That said on an invoice I always charge including travel, but the verbal agreement behind it is 45p / mile. Chris Link to comment Share on other sites More sharing options...
the kid Posted September 7, 2011 Share Posted September 7, 2011 Best get work to look in to that, we were on 35ppm until 3 years ago. Link to comment Share on other sites More sharing options...
slipstream Posted September 7, 2011 Share Posted September 7, 2011 You can charge your employer anything they will pay, but over the limit of the fixed profit car scheme it becomes a taxible payment and you will have to keep specific records and pay tax on the profit you make. So no chance you can work for minimum wage but charge £100 per mile to get there tax free Link to comment Share on other sites More sharing options...
dunk_1984 Posted September 7, 2011 Share Posted September 7, 2011 The HMRC page on the subject. http://www.hmrc.gov.uk/rates/travel.htm Link to comment Share on other sites More sharing options...
grandMA_the_2nd Posted September 7, 2011 Share Posted September 7, 2011 Not quite sure why everyone is banging on about the HMRC rate, the question from pexa2010 is how much to charge his clients... Your company can charge whatever it fancies for transport, as long as you cover your costs anything plus is a bonus. Then separate to that you can personally charge your company 45p a mile for the use of your personal car up to 10000 miles then it drops to a much lower rate thereafter.. P.s. Where do you buy your lpg, it hasn't been 44p a litre for over 3 years! I'm paying approx 78p... Link to comment Share on other sites More sharing options...
peza2010 Posted September 7, 2011 Author Share Posted September 7, 2011 Not quite sure why everyone is banging on about the HMRC rate, the question from pexa2010 is how much to charge his clients... Your company can charge whatever it fancies for transport, as long as you cover your costs anything plus is a bonus. Then separate to that you can personally charge your company 45p a mile for the use of your personal car up to 10000 miles then it drops to a much lower rate thereafter.. P.s. Where do you buy your lpg, it hasn't been 44p a litre for over 3 years! I'm paying approx 78p...Sorry that's a typo 74p.And does anyone here drop a few pence for clients that have more regular work for you? 40p a mile seems in my opinion a little steep for my personal car (I'm having the split personality of charging what is reasonable, and charging what is me just getting as much as I can) Link to comment Share on other sites More sharing options...
Pete McCrea Posted September 7, 2011 Share Posted September 7, 2011 It depends if you mean steep as in it costs 30p a mile to fuel it. But if you then consider the cost of insuring it for the journey, maintaining it, taxing it, then 40p a mile will cover costs, not be a profit making exercise. Add those figures up and see what it costs you a year to keep the car on the road, then work out how many business miles you do on average and add the fuel cost if you really want to be fair to the clients. Don't forget to factor in your time doing the sums and arranging to get it taxed etc, as those all become overheads to you as a self employed worker, taking you away from tasks such as widening your client base or quoting the next job. Link to comment Share on other sites More sharing options...
peza2010 Posted September 7, 2011 Author Share Posted September 7, 2011 The sums are as follows. Taking yesterday's job as an example.... 300 miles cost me £50 to fuelRoad tax for the day 30pInsurance £3.50 Tyres and everything else I put down to just having a car on the road and take on the chin. I COULD charge £120 quid for this at 40p a mileCosts as about £53.80... Link to comment Share on other sites More sharing options...
gareth Posted September 8, 2011 Share Posted September 8, 2011 40p (or 45p as I believe it's now changed to) isn't a suggestion of what you should charge the client - it's what you can 'write off' per mile under the fixed profit car scheme in your accounts. Your accountant should have told you about that if you're self-employed. Another point worth bearing in mind is that, if you are operating as a limited company or a sole trader (because there's no such thing as simply 'freelance'), you should be invoicing your client for the job as a whole, and not splitting it out into fees, accommodation, expenses, etc. An invoice broken down in that way won't do you any favours if HMRC ever has cause to decide whether or not you're actually an employee, with all the inherent tax implications for you and your employer. Edit : - oh, and it's not just about the cost of fuel, tax and insurance. Servicing? Repairs? Tyre replacement? Depreciation of the vehicle? All this is part of the cost of running a vehicle. Link to comment Share on other sites More sharing options...
TomHoward Posted September 8, 2011 Share Posted September 8, 2011 Tyres and everything else I put down to just having a car on the road and take on the chin. I COULD charge £120 quid for this at 40p a mileThen you wouldn't be taking the tyres, clutch, and all the other perishables on the chin. If you're using the car mostly for personal split the purchase and maintenance price 50/50 into your sums and see how that adds up. Link to comment Share on other sites More sharing options...
Robin D Posted September 8, 2011 Share Posted September 8, 2011 You might find the AA running costs guide both surprising and useful. I wouldn't take the other costs 'on the chin' as you put it. You should pro rata them across your business vs private use. That said, you might like to consider a figure that you always add to any quote you make. I.e: £2500 plus mileage at 60p per mile (that seems to be at the low end of normal for my suppliers at the moment) so the client knows exactly what to expect. Equally you might want add to the standard quote that any overnight accommodation and subsistence will be charged at cost plus 5%. This will encourage them to book it and settle the bill themselves. ;) Link to comment Share on other sites More sharing options...
paulears Posted September 8, 2011 Share Posted September 8, 2011 1000 miles a week means a big hit on the residual value when you sell it! Link to comment Share on other sites More sharing options...
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