How much do you spend on fuel?

[bluedonkey]

I've voted 25-50%, but I've not included depreciation in the calculation. Over the life of the car so far fuel is running at 12p/mile and running costs (servicing, insurance, RAC etc) at 13p/mile. However fuel now is running at 16p/mile for the last couple of fills.

Interestingly I'm reducing my mileage by cycling to work on a e-bike (over 3,000 miles per year), but servicing cost for the e-bike are running at 10p/mile, so i'm saving the environment, but not my pocket so much. The e-bike is supposed to be serviced every 1500miles and its already gone through 2 chains (£34 each) 2 cassettes (£134 each) and a front chain ring (£35). I'm hoping if I'm more proactive on changing the chain regularly I can get more miles out of the cassettes (as they are expensive). The other problem has been getting spares. The bike shop has not been able to and I've had to pick them up from online stores, amazon and even e-bay.

Surprised that those bike parts have worn out so quickly.

[Lootman]

Give up on depreciation
how else can I explain it
Oh yeah
If it was a cost why doesn't the tax man allow it ?

The taxman does allow a deduction for depreciation of certain assets.

Just not for private individuals and everyday motoring.

[pje16]

No he doesn't
You can claim capital allowances for fixed assets
see the second paragaph here
https://www.nibusinessinfo.co.uk/conten ... ion-assets

[Lootman]

No he doesn't
You can claim capital allowances for fixed assets
see the second paragaph here
https://www.nibusinessinfo.co.uk/conten ... ion-assets

That is just depreciation with a different name. Your citation repeatedly uses the word "depreciation"!

[ten0rman]

Unfortunately, I forgot to consider insurance which adds another £250 or thereabouts which makes my fuel costs about 43% rather than the original value which put me in the top level.

Sorry,

ten0rman

[pje16]

No he doesn't
You can claim capital allowances for fixed assets
see the second paragaph here
https://www.nibusinessinfo.co.uk/conten ... ion-assets

That is just depreciation with a different name. Your citation repeatedly uses the word "depreciation"!

No it is not the same thing at all
I am getting fed up explaining this
You can depreciate at whatever rate YOU estimate is reasonable
Capital allowances are fixed by HMRC
I have worked for over 40 years in accounts and tax so give me some credit for knowing what I'm saying

[richlist]

Wouldn't the amount spent on fuel vary enormously depending on the mpg the car delivers and the mileage covered ?
I've had cars that deliver 20mpg and others that do nearly 60mpg. The running costs (excluding fuel) are/were similar.
Seems to me we can all arrive at a percentage of cost that represents fuel but we can't use the figures for an accurate comparison.

[Lootman]

No he doesn't
You can claim capital allowances for fixed assets
see the second paragaph here
https://www.nibusinessinfo.co.uk/conten ... ion-assets

That is just depreciation with a different name. Your citation repeatedly uses the word "depreciation"!

You can depreciate at whatever rate YOU estimate is reasonable

Capital allowances are fixed by HMRC

Saying you can depreciate something at whatever rate you want is immaterial unless you are getting some kind of tax break for it. If you want to call that "Capital Allowance" instead then fine, it doesn't change what it is.

And yes of course the taxman sets the amount you can depreciate in a year, otherwise everyone would claim 100% in year one!

[daveh]

I've voted 25-50%, but I've not included depreciation in the calculation. Over the life of the car so far fuel is running at 12p/mile and running costs (servicing, insurance, RAC etc) at 13p/mile. However fuel now is running at 16p/mile for the last couple of fills.

Interestingly I'm reducing my mileage by cycling to work on a e-bike (over 3,000 miles per year), but servicing cost for the e-bike are running at 10p/mile, so i'm saving the environment, but not my pocket so much. The e-bike is supposed to be serviced every 1500miles and its already gone through 2 chains (£34 each) 2 cassettes (£134 each) and a front chain ring (£35). I'm hoping if I'm more proactive on changing the chain regularly I can get more miles out of the cassettes (as they are expensive). The other problem has been getting spares. The bike shop has not been able to and I've had to pick them up from online stores, amazon and even e-bay.

Surprised that those bike parts have worn out so quickly.

So was I, but its happened twice now at a similar mileage. I'm hoping changing the chain more often will increase the life of the much more expensive cassette.

[pje16]

No he doesn't
You can claim capital allowances for fixed assets
see the second paragaph here
https://www.nibusinessinfo.co.uk/conten ... ion-assets

That is just depreciation with a different name. Your citation repeatedly uses the word "depreciation"!

You can depreciate at whatever rate YOU estimate is reasonable

Capital allowances are fixed by HMRC

Saying you can depreciate something at whatever rate you want is immaterial unless you are getting some kind of tax break for it. If you want to call that "Capital Allowance" instead then fine, it doesn't change what it is.

And yes of course the taxman sets the amount you can depreciate in a year, otherwise everyone would claim 100% in year one!

I have tried.... but now I really do give up

[Lootman]

No he doesn't
You can claim capital allowances for fixed assets
see the second paragaph here
https://www.nibusinessinfo.co.uk/conten ... ion-assets

That is just depreciation with a different name. Your citation repeatedly uses the word "depreciation"!

You can depreciate at whatever rate YOU estimate is reasonable

Capital allowances are fixed by HMRC

Saying you can depreciate something at whatever rate you want is immaterial unless you are getting some kind of tax break for it. If you want to call that "Capital Allowance" instead then fine, it doesn't change what it is.

And yes of course the taxman sets the amount you can depreciate in a year, otherwise everyone would claim 100% in year one!

I have tried.... but now I really do give up

We are not disagreeing about the tax allowance. We just call it two different things. I am using the general term and you are talking about a specific implementation of it.

Back when I had my own business I would get a tax allowance for the depreciation of some capital assets every year, with the blessing of my accountant. So you will struggle to convince me that I didn't!

[pje16]

My last attempt
if they are the same thing why are there two very different terms for it
the rate of one is at the discretion of the accountant the other is set by the taxman

PS You appeared to have a dig for "citing depreciation"... that is what it called
PPS You had a business
I have prepared accounts for hundreds of them

[Lootman]

if they are the same thing why are there two very different terms for it?

There is often more than one term for something. I am using one and you are using another. Why is the UK estate tax misleadingly called an inheritance tax?

the rate of one is at the discretion of the accountant the other is set by the taxman

PS You appeared to have a dig for "citing depreciation"... that is what it called

I know that is what it is called. Which is why I have been calling it that all along!!

And again I am talking only about the allowance for depreciation that is set by the taxman. It would serve no purpose for me to have computed or reported it at my "discretion".

[genou]

My last attempt
if they are the same thing why are there two very different terms for it

Perhaps one to help clarify it any one's mind is for them to have a quick gander at https://www.gov.uk/capital-allowances/f ... allowances .

Look at the list of items that qualify for FYA.

CAs are, and have been for a many years now, all about trying to manage business behaviour. First Year Allowances were invented in an attempt to kick start economic activity ( buy now while FYA available!!! ) and applied to virtually everything. That free lunch didn't last long IIRC.

The link back to depreciation ( and there was one in some cases - like Industrial Buildings Allowance, and whatever the one for ships was called ) is long gone .

[pje16]

Perhaps one to help clarify it any one's mind is for them to have a quick gander at https://www.gov.uk/capital-allowances/f ... allowances .

Dare I mention, it that link doesn't mention the D word ... I wonder why

[Lootman]

Perhaps one to help clarify it any one's mind is for them to have a quick gander at https://www.gov.uk/capital-allowances/f ... allowances .

Dare I mention, it that link doesn't mention the D word ... I wonder why

It doesn't need to. The word "Depreciation" is not the term that the taxman uses for its version of depreciation allowance, which it chooses to call Capital Allowance.

However the Capital Allowance is quite obviously a form of depreciation (with a small d). So your original statement that the taxman does not recognise depreciation was an overly narrow and technical characterisation. Claims for Capital Allowances are claims based on the principle of depreciation.

I have done tax returns in 3 different countries. Each of them had allowances for depreciation. But they all called it something different i.e. they each had their own technical name for it. That is why I, and most people, use the more general term - depreciation - to promote broader understanding.

[AF62]

Are we including the biggest cost...depreciation?

John

If we are then in one of the cars I use I have driven 8,000 miles over the last year for a cost of

- £50 for fuel
- £100 for a service
- £0 for road tax
- £150 for insurance

Not sure that gives a very representative picture though.

I assume for some reason that you have deducted appreciation of one of your cars from the fuel cost. Why would you do that?

No. The fuel cost itself was around £50, which was 2,000kWh of electricity, half of which cost me 5p / kWh and the remainder provided free by various supermarkets and shopping centres.

[redsturgeon]

Are we including the biggest cost...depreciation?

John

If we are then in one of the cars I use I have driven 8,000 miles over the last year for a cost of

- £50 for fuel
- £100 for a service
- £0 for road tax
- £150 for insurance

Not sure that gives a very representative picture though.

I assume for some reason that you have deducted appreciation of one of your cars from the fuel cost. Why would you do that?

No. The fuel cost itself was around £50, which was 2,000kWh of electricity, half of which cost me 5p / kWh and the remainder provided free by various supermarkets and shopping centres.

Aha I'd assumed from the OP that we were not including anything plugged in.

John

[AF62]

Are we including the biggest cost...depreciation?

John

If we are then in one of the cars I use I have driven 8,000 miles over the last year for a cost of

- £50 for fuel
- £100 for a service
- £0 for road tax
- £150 for insurance

Not sure that gives a very representative picture though.

I assume for some reason that you have deducted appreciation of one of your cars from the fuel cost. Why would you do that?

No. The fuel cost itself was around £50, which was 2,000kWh of electricity, half of which cost me 5p / kWh and the remainder provided free by various supermarkets and shopping centres.

Aha I'd assumed from the OP that we were not including anything plugged in.

John

Isn’t electricity “fuel”…

But the point was that ignoring the depreciation of the car doesn’t give the full picture as my EV probably costs more in depreciation than some other ICE cars, but their ICE cost far more in fuel.

[scotview]

But the point was that ignoring the depreciation of the car doesn’t give the full picture as my EV probably costs more in depreciation than some other ICE cars, but their ICE cost far more in fuel.

Our EV fuel is about the same as our ICE fuel. That is because our ICE hardly does any miles in a month. The EV doesn't do a lot either but I only voted in respect of our ICE.
Just a thought, does the miles travelled per month have a significance in this poll ?