Question on claiming petrol costs?

[Deleted member 26818]

The other thing with the 45p rate, is that it is only for the first 10,000 miles, it then drops to 25p.

 

[Richard Burns]

If you are claiming 45p/mile for your fuel and then claiming individual expenses for your car insurance, tax, repairs, servicing etc. then you are majorly ripping off the system.

A car on a low number of miles per year costs about £1.00 per mile (may be out of date now) to actually run if all costs are considered.
Because the tax, MOT, insurance, etc. are fixed annual costs not related to the mileage the more miles you do the cheaper it is per mile to run the vehicle.
If you are doing a lot of miles, I think it is over 20,000 per year, then the simplified expenses is worthwhile, if you are doing only 5,000 miles per year then actual costs should be better for you.

 

[Risteard]

If I remember correctly, once you start claiming using one "method", you can't change until you change your vehicle.

You are 100% correct. You must continue using whichever system you started with for the vehicle.

And it isn't 45p per mile. It is 45p per mile for the first 10,000 miles in the fiscal year and then only 25p per mile thereafter.

 

[Dynamoaccounts]

Erm no, you can definitely use the 45p per mile rule for a company vehicle too. It's ideal for sole traders who just want a quick and easy way to work out what they can claim - keep a mileage log book, add it up at end of year, job done.

Hi there,if it's a company owned vehicle then the rates are reduced.

Company Car Rates

You can change the rates but only when change the vehicle, once set down one path should use it until change. The mileage rates is quick and easy to calculate but it's best to check at the end of the tax year which is best to use for your circumstances, weigh up both methods and use which is best for your circumstances.