10p a mile fuel allowance, how much is it costing me?

Question

My company pays me 10p a mile fuel allowance, I am averaging about 40mpg, with the cost of diesel approx £1.23 a litre. I am sure that I am losing money here but struggling to do the maths to see how much I am getting per litre back from my company...Help someone please!

Answer 1

Oh Dear - you are way out of pocket.

You must consider that there are more costs concerned in running a car than the fuel you put into it.

What about the servicing costs ? and the depreciation / wear and tear on your vehicle ?

You must also check your insurance details to make sure that you are covered for business use. If you are not covered on your policy and have a bump while you are on company business you may find that the insurance company refuse to pay out.

10p per mile seems very low .... perhaps you need to look for another job.

Answer 2

As a gallon of diesel costs about £5.50 and you are given £4 to cover the mileage, this means that you are out of pocket by £1.50 per gallon.

Answer 3

Yes, you're losing out... but you can claim back more (I think up to 40p a mile?) on your tax returns.

Answer 4

Your getting £4 for you 40miles.you are £1-50 per 40 miles out of pocket