Mileage rate

[Tricky one]

hi, I am looking for correct rate for mileage of 18,000 per year. I know there are 2 choices:

1. up to 6437km - 78.76 cent
and
2. over 6437km - 37.94 cent

Confussion is about how to apply that.

18000km x 37.94
or
6437km x 78.76 + 11563km x 37.94

What would be right calculation?

 

[John Rambo]

It depends on the engine size of your vehicle and when exactly we're talking about (the rates changed on 5 March 2009). In your example above the latter calculation would be correct (for a car with an engine size of 1.501L or more) if we were looking at the pre-05/03/2009 regime. Now the figures are 59.07c and 28.46c.

 

[Tricky one]

I am preparing 2008 accounts and engine size is correct as above in your message.

 

[John Rambo]

I am preparing 2008 accounts and engine size is correct as above in your message.

Then it's the first 6,437km @ 78.76c and the balance at 37.94c. As I'm sure you're aware all journeys should be recorded appropriately.

 

[Tricky one]

Thanks a lot for your help John Rambo