mileage rates with fuel costs going up

[THEGRIPHTER]

Hi everyone

I own a commercial vehicle which I drive on behalf of the company

I pay for service, tyres, DOE, tax and commercial insurance.

However With the price of diesel rising, the cost of running the vehicle is almost the cost of the milesgae rate

I.E .28 cents a km over 6.5km

cost to fill a tank: 150 euros 2.5 litre
range 600-650km range per tank

So for 1200 km i get just under 350 euros mileage rebate
it costs 300 euros in fuel alone, never mind wear and tear to the vehicle.

Is this correct?
Is there no other way of claiming mileage or anything addtional to the running costs as I cannot afford to run it. 4 new tears are needed soon @ 600 for those..

Thanks

 

[Joe_90]

Out of interest why did the company not provide you with the commercial vehicle?

VAT could be recovered on original cost and diesel making both 21% cheaper.

 

[mandelbrot]

Hi everyone

I own a commercial vehicle which I drive on behalf of the company

I pay for service, tyres, DOE, tax and commercial insurance.

However With the price of diesel rising, the cost of running the vehicle is almost the cost of the milesgae rate

I.E .28 cents a km over 6.5km

cost to fill a tank: 150 euros 2.5 litre
range 600-650km range per tank

So for 1200 km i get just under 350 euros mileage rebate
it costs 300 euros in fuel alone, never mind wear and tear to the vehicle.

Is this correct?
Is there no other way of claiming mileage or anything addtional to the running costs as I cannot afford to run it. 4 new tears are needed soon @ 600 for those..

Thanks

That can't be right - 600km out of a 100L tank (assuming 1.50 per litre for diesel), so you're getting 17 mpg out of a 2.5l diesel?!

I don't kow how many business kms you're doing, but if it's 25,000:

1st 6,437 @ 59c - €3,798
Remainder 18,563 @ 28c - €5,198
Total mileage received = €8,996

Fuel cost:
€150 per 600kms - €4,167

So that would leave €4,729 to cover tyres & servicing. Since you have to tax and insure it anyway if you want to have it for your own use (and in fact you would have to pay higher tax if it was only for private use), I'm not sure you can factor those in, in full, as part of the cost that should be reimbursed.

I don't really see how you could not be properly reimbursed, even if your mileage is waaaay higher than 25,000 kms... at 40.000 kms you'd have €6,528 after fuel, to cover servicing etc, and at 60,000 kms you'd have €8,795.

If however, you genuinely feel your reimbursed mileage isn't covering the cost of your mileage, you can choose to claim your motoring expenses directly from Revenue, on a tax return.

HOWEVER, if you choose that option, your employer must operate PAYE/PRSI on whatever mileage they pay you. You would then have to wait until after the year end, and submit a claim for your actual motoring costs, which would result in a tax refund.

From what you're saying this would be a substantial claim, and would be quite unusual, so you may be prepared to have the claim scrutinised - which would mean having every scrap of paper to vouch what you are claiming... you'd also be substantially out of pocket all year, until you get to claim your tax refund...