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Evan at 40p a mile, are you still subsidising your company?

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    Evan at 40p a mile, are you still subsidising your company?

    If you claim up to 10k miles at 40p, as it's Yourco Ltd, you're only really getting at best 16p a mile (The tax that you would pay if you took the 40p as salary). If you run a diesel that does 40mpg, I reckon that's 15p per mile just on fuel.

    A company van is looking quite attractive...

    #2
    Originally posted by Hiram King Of Tyre View Post
    A company van is looking quite attractive...
    That is what tay has as his company car.

    Comment


      #3
      Originally posted by Hiram King Of Tyre View Post
      If you claim up to 10k miles at 40p, as it's Yourco Ltd, you're only really getting at best 16p a mile (The tax that you would pay if you took the 40p as salary). If you run a diesel that does 40mpg, I reckon that's 15p per mile just on fuel.

      A company van is looking quite attractive...
      LPG(shush)

      Comment


        #4
        Originally posted by Hiram King Of Tyre View Post
        If you claim up to 10k miles at 40p, as it's Yourco Ltd, you're only really getting at best 16p a mile (The tax that you would pay if you took the 40p as salary). If you run a diesel that does 40mpg, I reckon that's 15p per mile just on fuel.

        A company van is looking quite attractive...
        So, take 40p:

        Pay it in Mileage allowance, tax free.
        Put 15p worth of fuel in the car
        Put 25p in your pocket

        or

        Pay 40p as dividend
        Put 16p in Mr Browns pocket
        Put 15p of fuel in the car
        Put 9p in your pocket

        You are 16p a mile worse off, @ 10,000pa that's £1,600 pa

        Can I be your accountant?

        Comment


          #5
          No, and don't call me Evan.

          Comment


            #6
            Originally posted by Archangel View Post
            So, take 40p:

            Pay it in Mileage allowance, tax free.
            Put 15p worth of fuel in the car
            Put 25p in your pocket

            or

            Pay 40p as dividend
            Put 16p in Mr Browns pocket
            Put 15p of fuel in the car
            Put 9p in your pocket

            You are 16p a mile worse off, @ 10,000pa that's £1,600 pa

            Can I be your accountant?

            No:

            Pay it in Mileage allowance, tax free.
            Put 15p worth of fuel in the car
            Put 25p towards servicing tax repairs etc (which will never cover it)

            or

            Pay 40p as dividend
            Put 16p in Mr Brown's pocket
            Put 24p in your pocket
            Let the company buy a pickup (oh, sorry, van) and pay all vehicle expenses including private fuel, then pick up the BIK

            I don't know which is best really.

            Comment


              #7
              Originally posted by Hiram King Of Tyre View Post
              No:

              Pay it in Mileage allowance, tax free.
              Put 15p worth of fuel in the car
              Put 25p towards servicing tax repairs etc (which will never cover it)

              or

              Pay 40p as dividend
              Put 16p in Mr Brown's pocket
              Put 24p in your pocket
              Let the company buy a pickup (oh, sorry, van) and pay all vehicle expenses including private fuel, then pick up the BIK

              I don't know which is best really.
              Why not just double the mileage you book by telling the tax man you go home for lunch? Thus 40p/mile becomes 80p / mile. Sorted.
              The Mods stole my post count!

              Comment


                #8
                Originally posted by Pickle2 View Post
                Why not just double the mileage you book by telling the tax man you go home for lunch? Thus 40p/mile becomes 80p / mile. Sorted.
                Because that would be dishonest.

                Comment


                  #9
                  Originally posted by Churchill View Post
                  Because that would be dishonest.
                  and with the way legislation is going, everything you do online is open to scrutiny and companies/forums etc. will have to give you up on request by the government
                  Confusion is a natural state of being

                  Comment


                    #10
                    Oddly I was thinking about this this morning in bed (how sad). Very rough but fairly realistic figures for modest saloon:

                    1500cc
                    Costs £10k
                    Last 10 years from new to scrap yard
                    Does 100k miles in that time
                    Tax £120.00 pa
                    Insurance £400 pa
                    Servicing, MOT and routine repairs, tyres, disc pads etc £450 pa
                    Fuel say £1.20 per litre = £6.60 a gallon
                    Does 40mpg

                    Depreciation is 10p/mile
                    Fuel is 17p/mile
                    Tax and insurance is 5p/mile
                    Routine repairs etc are 5p/mile

                    Total 37p

                    This does not reduce if over 10k miles, does not include major repairs which can easily be £1k plus if your airbag or summit goes, my figures for mpg and routine costs are pretty optimistic, most people do not keep their cars for ten years so depreciation is much higher and many pay a lot more in the first place.

                    In othe words, if you use your car for business, the fecking government are RIPPING YOU OFF!

                    What a surprise!
                    bloggoth

                    If everything isn't black and white, I say, 'Why the hell not?'
                    John Wayne (My guru, not to be confused with my beloved prophet Jeremy Clarkson)

                    Comment

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