Fuel costs

[patdavies]

For the sake of this post, assume the following:

1) I am employed in a role that requires me to travel to customers and other offices very frequently;

2) I am paid a car allowance for the use of my own car. If I had a company car instead, the basic premise of this post does not alter;

3) I am paid Xp per mile for travel (for fuel as other costs are covered by the car allowance).

My question is, if the Xp/mile no longer covers the cost of fuel, am I entitled to refuse to travel or must I subsidise the company from my own pocket?

My car averages 26 mpg. A year ago, the Xp/mile allowed a break even, now the car would need to achieve 35 mpg to break even. The obvious answer is to change the car, but the company's rules for car allowance state that the car must be less than 3 years old, may not be 2-dr or sports car; must be 'suitable' for business. This is currently unaffordable, given that the prices of everything else is rising

[Weird Al Yankovic]

If you refused to travel would you be able to do your job?
If you couldn't, would you be disciplined for refusing to do your job?

I take it you are paid a fuel allowance, beside a car allowance, as part of your remuneration?

And do you have an annual pay review or similar? (Unless stated in your contract then a pay rise isn't obligatory)

[patdavies]

Originally Posted by Weird Al Yankovic

If you refused to travel would you be able to do your job?

A lot more would have to be via conference call, which is not as effective as face-to-face meetings; but some travel would still be necessary and the fuel not paid for fully.

If you couldn't, would you be disciplined for refusing to do your job?

Probably

I take it you are paid a fuel allowance, beside a car allowance, as part of your remuneration?

Xp/mile as stated above

And do you have an annual pay review or similar? (Unless stated in your contract then a pay rise isn't obligatory)

Yes. However, pence/mile is across the company and not available for individual negotiation. Annual pay review as regards mileage rates is a red herring.


This is not so much about refusing to travel, but whether or not an employee is entitled to recover the full cost of expenses incurred in pursuance of their work, as opposed to an arbitrary figure imposed by the employer.

I am, of course aware, that the full costs can be reclaimed on income tax (less any contribution from the employer). However, this only recovers 20% of the cost as the amount is not repaid, but given tax free.

[Sidewinder]

I have a similar position Pat, and after several months of negotiation the rate has been put up from 30p to 36p per mile for private cars and from 11p to 14p per mile for company cars. Note that the increase had to be 'negotiated' quite vigorously against the suggestion that face to face meetings would become fewer and consequently business could suffer.

Interestingly the IR haven't raised the 40p/25p levels for some time now!