Actual Cost (Year to Date/YTD)

Pence per Mile

We calculate a running pence per mile, throughout a tax year, recalculated at the end of each period after a successful close off.

To calculate your pence per mile, we divide your total costs through a tax year, by the total miles done in the tax year:

Total business + total private = Total miles

Total employee + Total employer funded costs = Total spend

Total spend / total miles = pence per mile (PPM)

Private Mileage Value

By multiplying all private miles in the tax year by the previously calculated pence per mile, we find the value of all your private miles, as of the most recently closed period. This means all private miles are charged at this new pence per mile. 

Pence per mile * private miles = deductions so far

Calculating all private miles against the latest PPM means if you’ve been driving more efficiently, you’ll be charged less for any private miles charged at a higher rate. It also means, at the end of a tax year, you’re not owed any money for the miles you’ve done throughout a year, and you don’t owe your company any money at the end of a tax year.

Current Period Value

To avoid being charged twice for private miles you've already paid for, we subtract all previous deductions in the tax year from this figure, leaving you with the deduction owed for the period.

Deductions so far - previous period deductions = deduction for period.

Employee Funded Costs

Any costs in the period put towards running the vehicle, like fuel paid for out of pocket, will be taken off the period deduction.

Deduction for period - Employee Funded Cost (for period) = Private Fuel Cost for period