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Personal vehicle for work use

Discussion in 'off topic' started by matt j, Aug 2, 2020.

  1. matt j

    matt j pfm Member

    Does anyone here use their own private vehicle for work use? How does it work for claiming back on the mileage with tax relief etc. if you're PAYE?

    I do about 40k per year for work purposes in a company vehicle, but I'm toying with the idea of running my own vehicle because I'd like something nicer for personal use plus I'd have more freedom because even though I'm allowed to use the work vehicle for private use it was a verbal arrangement that it would be for essential trips not just swanning around on a whim. I can't justify a separate personal car and work vehicle, I already tried it and most of the time it sat unused and I don't have the space for two vehicles anyway.

    How would this work, is it just a case of keeping track of work mileage and then submitting some kind of claim at the end of the tax year?
  2. Woodface

    Woodface pfm Member

    I would caution against it given your mileage.

    I do use a private car for company use but ‘only’ do about £15k per year.

    The kick in the teeth is that you can only claim 45p per mile off the tax man for the first 10,000 miles.

    My company only pays 14p per mile so I claim the difference from the tax man as relief which means my tax code is more favourable.

    With high mileages the costs of running the car (tyres, servicing & insurance) will really mount up. I cannot see how you would be any better off.

    Sorry to be a downer
  3. Amber Audio

    Amber Audio This is the Day

    After 10k miles you get 25p per mile and do not have to pay tax. You’ll get £11500 tax free for 40 thousand miles. Set of boots, fuel, big service inc brakes, wear and tear, increase of insurance premium from SDP and Commuting to include Business Travel. Work out if it’s worth it.

    I run 2 company vans but pay mileage for the 2 directors car travel, company cars aren’t worth it for us.
    matt j likes this.
  4. twotone

    twotone pfm Member

    I run a van as a sole trader all of the expense of running it is charged against my profit but the accountant deducts about 20% for personal use same for mobile phone etc.
  5. Woodface

    Woodface pfm Member

    He also has to fund the purchase of the car.
  6. Ponty

    Ponty pfm Member

    I’d let the company pay to buy and run it at that sort of mileage. What happens if it breaks down and you can’t get to a job? Presumably that becomes your problem, not theirs? Just be careful if you are using a company vehicle and not paying BIK tax. HMRC have been known to literally spy on people, a trip to the shops for personal use and you’re busted. It’s pretty binary, either you can use it for personal use or you can’t.
  7. Amber Audio

    Amber Audio This is the Day

    Sure but you might already own/need a vehicle so everyone will be different. OP appears to need a private car so he has to buy one anyway, might as well get one decent motor and do the 40k in comfort. My guys can use the van for “limited private use” as defined by HMRC - a run to dump a mattress is allowed for example. Beyond that it’s a taxable benefit, I find it simpler not to have a company van and use my personal vehicle, does mean keeping a mileage book for works trips, OP likely would keep his personal trips and deduct. Everyone will have their own take on this for sure.
    matt j likes this.
  8. stevec67

    stevec67 pfm Member

    Yes, I do and it's worthwhile. 10k miles at 45p. The rest at 25p. 15k a year. That's about £5.5k a year tax free, for that I buy insure and fuel a used car with money over.
    matt j likes this.
  9. lordsummit

    lordsummit Moderator

    Can we not use the ‘p’ word. I think you and I have had this conversation before.
  10. matt j

    matt j pfm Member

    Sorry, I was struggling to find an alternative. I'll edit it.

    Edit: Or I wont, because it's gone.
    lordsummit likes this.
  11. stevec67

    stevec67 pfm Member

    My pal does similar. He tells the taxman his van is 95% business use, which it probably is, and pays a minor BIK. This way if he gets pinched going to collect a takeaway or going off cycling with me and a couple of bikes on board then he's in the clear. His wife has a car that he uses.
    twotone likes this.
  12. stevec67

    stevec67 pfm Member

    If you are looking at a derogatory word for a person of presumed low morals may I recommend the use of "scratter", as widely used in West Yorkshire to describe anyone whose behaviour is uncouth. This term does not describe any ethnic group, but can be used against anyone you consider to be of low standing.

    It's probably synonymous with "scally" depending on region.
  13. cctaylor

    cctaylor pfm Member

    The wife's car is important in this situation from HMRC point of view. Being able to prove a viable alternative keeps them happy if they ever query the situation.

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