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

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    Quote 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.

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    Quote 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)

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    Quote 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?

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    No, and don't call me Evan.

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    Quote 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.

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    Quote 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!

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    Quote 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.

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    Quote 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

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    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

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