Do you actually make anything on mileage?

[Hiram King Of Tyre]

I guess 40p per mile would seem reasonable but if it's your own business then if you didn't do the mileage you could pay the 40p as salary and pocket 24p so you are only really gaining 16p per mile. After 10k miles of course when you pay 25p, you are only gaining 10p a mile. Better than nowt but I think you are still loosing out and there's no profit to be made.

Am I missing something?

[Bagpuss]

I guess 40p per mile would seem reasonable but if it's your own business then if you didn't do the mileage you could pay the 40p as salary and pocket 24p so you are only really gaining 16p per mile. After 10k miles of course when you pay 25p, you are only gaining 10p a mile. Better than nowt but I think you are still loosing out and there's no profit to be made.

Am I missing something?

It's tax deductable

[Cooperinliverp00l]

I do about 30000 miles a year (business only) so every penny counts for me.

[DimPrawn]

I guess 40p per mile would seem reasonable but if it's your own business then if you didn't do the mileage you could pay the 40p as salary and pocket 24p so you are only really gaining 16p per mile. After 10k miles of course when you pay 25p, you are only gaining 10p a mile. Better than nowt but I think you are still loosing out and there's no profit to be made.

Am I missing something?

There are very few cars that actually cost less than 40p a mile to run when you include fuel, depreciation, insurance, servicing, etc.

So most people make a loss, but it's better than nothing!

[Hiram King Of Tyre]

It's tax deductable

Yes but I've factored that in haven't I. Can you run a car on 16p/10p a mile? Unless I'm missing something, even 40p/mile doesn't pay....

[VectraMan]

Why can nobody on the internet spell "losing" or "lose"?

With all expenses the amount you actually gain is the tax you pay. When I started I was with an umbrella, so was paying 40% income tax and 40% of the mileage expenses made me a couple of pounds per day over the cost of the petrol. So I was better off driving 180 miles per day than if I'd lived next door to the client.

Now I have a Ltd. it wouldn't work out like that.

[rootsnall]

It's a nice little earner in terms of tax savings if you run a banger and clock up plenty of miles. Just done some fag packet figures and I'm making quite a decent profit on my annual motoring.

[Hiram King Of Tyre]

Why can nobody on the internet spell "losing" or "lose"?

With all expenses the amount you actually gain is the tax you pay. When I started I was with an umbrella, so was paying 40% income tax and 40% of the mileage expenses made me a couple of pounds per day over the cost of the petrol. So I was better off driving 180 miles per day than if I'd lived next door to the client.

Now I have a Ltd. it wouldn't work out like that.

Right, exactly. So, you gain 16p/10p per mile. I don't think you can run a car on that.

[oracleslave]

Why can nobody on the internet spell "losing" or "lose"?


Now I have a Ltd. it wouldn't work out like that.

Annoying isn't it. Especially those that don't use capital letters at the start of a sentence.

[Hiram King Of Tyre]

It's a nice little earner in terms of tax savings if you run a banger and clock up plenty of miles. Just done some fag packet figures and I'm making quite a decent profit on my annual motoring.

I'd like to see your figures. At 10p per mile, that would just about cover the fuel surely?