Car Allowances

[Mac]

I am trying to put together a reasonable I&E and wondered if there is an acceptable standard mileage rate that can be used to work out running costs. HMRC use 40p/mile for the first 10,000 miles and 25p/mile over that and I wondered if anything similar existed for IVA purposes.

TIA

The only way is up

[MelanieGiles]

The best way to do this is to work out what you actually spend on petrol. The IVA income and expenditure is based upon actual expenditure and not allowances.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Mac]

Thanks for the quick response again.

There are obviously other actual costs other than petrol involved like tyres, oil, brakes etc, I just wondered if there was an easier way other than guesstimating.

The only way is up

[MelanieGiles]

The costs relating to cars are generally split as follows:

Car Petrol - Whatever you spend. But do be able to justify the mileage you travel.
Car Tax - Annual charge divided by 12
Car Insurance - Whatever your annual charge is divided by £12
Car Maintenance - Based on previous year's bilss, but £30 per month is usually reasonable.

Hope this helps.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk