Running Cost of Private Car more than 45p per mile??

Running Cost of Private Car more than 45p per...

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Hi

Is there a way I can claim the additional running cost of my private car when my cost per mile exceeds 45p?

My private car is leased with a cap of 10,000 miles per annum, my client base has recently changed and I am now doing a lot more business mileage.

This means I am having to pay the running costs of my car - lease cost/insurance/fuel plus an additional cost per mile to the lease company as I am now being penalised by them for my excess mileage - if this is worked out, my actual cost per mile is closer to £1.10 per mile.

Can I simply include an expense claim on the employment pages of SA Return?

Many thanks

Replies (8)

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By tonycourt
06th Dec 2013 10:45

Are you....

...employed or self-employed? It make a vast difference.

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By arcon5
06th Dec 2013 10:52

Sounds like you need a new car if its costing you in excess if £10k per year

:O

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By User deleted
06th Dec 2013 11:13

I think the point ...

... of the 45p/mile is to encourage people to get economical environmentally friendly cars. The law allows you to cover the cost of running a vehicle that will do the job you want, if you choose "extra" of the basic necessity that is your choice.

This is one of the pitfalls of statement car on contract hire or lease purchase!

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By rachc
06th Dec 2013 11:28

Tonycourt

Employed (director), thanks

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By tonycourt
06th Dec 2013 12:06

Director's car

In which case I'm afraid it's 45p per mile only.

If the car is costing you that much perhaps you should consider transferring it to your company. It can claim relief on all the costs. But your car sounds like it might emit high amounts of CO2 and so, as OGA indicates, this will result in a high benfit in kind charge. It might be worth crunching the numbers though just to prove it. Otherwise changing to a more economic car is one option.

An alternative is to operate car as a company owned pool car or simply one that is not made available to you for private use - a difficult hurdle to clear, but not impossible. it would also mean you could recover VAT on the cost (proving no intention to use privately  to HMRC's satisfaction isn't easy though). Plus you would of course need another car for personal journeys.  

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By annettedwyer
06th Dec 2013 12:11

Benefit in kind...

You can pay yourself a higher amount but the difference between that and 45p will be a benefit in kind to be decalred on your P11d

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By Steve Kesby
06th Dec 2013 12:21

I agree with Tony and Annette...

... but to further clarify Annette's point, if you pay yourself more than 45p per mile from the then it needs to be processed through payroll for NIC purposes and the "profit" element (above 45p per mile) gets reported on the P11D for tax purposes (and on which there's then no Class 1A)

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By Melody
06th Dec 2013 14:01

If you were self-employed you'd be able to choose to claim actual expenses, apportioned between business and private mileage (so the total fee paid for the excess mileage would be apportioned across all miles like the other running costs, not allocated just to the business trips). 

But, according to the HMRC website, "once you've chosen to use them" (flat rates) "for a vehicle you must stick with this as long as you use that vehicle for your business." So even if you were self-employed you wouldn't be able to switch to claiming actual running costs unless you get a new car and claim actuals from the start on that.  

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