Mileage Advice

[GracefulH&B]

Hey Folks

Just looking for some advice. I am a mobile therapist and have been in business nearly 3 years. When I set up, I went anywhere and everywhere, just to get the business. I live in a very rural area and can drive anything up to 50 miles (round trip) to see one client for £20, so once you've taken mileage out, I've made a loss even before I've done a treatment. Thankfully, business is going well and I'm now thinking that I really need to set an area of, say, a 20 mile radius of where I live. Anything out of that 20 miles incurs a mileage fee. So I have a few questions. Firstly, is 20 miles reasonable (for a £20 treatment, I'm only left with £11 after mileage). Secondly, what do you charge over the 20 mile radius and lastly, I don't want to abandon these clients in the very rural areas, so how do I word a letter saying that I will be charging mileage costs.

Any tips and advice very gratefully appeciated.

Mandy

 

[Enchanting Beauty]

Hi

I'm mobile too and I charge 30p a mile over a 10 mile radius of my town. I think maybe 20 miles is a bit far because don't forget you have your journey back home so you are losing double.

With regards to wording a letter, I would just say that due to the increase in petrol costs etc, you are going to have to charge x amount for mileage. If they're happy with your work, they're not going to be too worried about paying an extra £5 or so.

HTH x

 

[kirsty]

Hi, I've done mine slightly differently. I have a map which shows 3 bands A, B and C. A is approx a 10 mile radius and has no extra charge, B is about a 15 mile radius and is an extra £3 and C is about 20 miles and is an extra £6. You can have a look if you want Smart Nails - Mobile Nail Services for Cottenham click on 'mobile coverage'

 

[pinkgirlie]

Hi, I've done mine slightly differently. I have a map which shows 3 bands A, B and C. A is approx a 10 mile radius and has no extra charge, B is about a 15 mile radius and is an extra £3 and C is about 20 miles and is an extra £6. You can have a look if you want Smart Nails - Mobile Nail Services for Cottenham click on 'mobile coverage'

That's a good idea! I'm just starting up, but haven't done a map yet, need to though! :o

 

[kirsty]

It works quite well and leaves no room for arguments about how far away they are. I was worried at first that clients would be put off by the extra £6 but they've all said it's fine.

 

[Sweetcheeks]

Did you know that you can claim back mileage against your business? My accountant told me this!!! As long as you keep a record of all the places you drove to (appointment book is fine - with locations jotted somewhere) then you can claim per mile! Sometimes I could kiss my accountant! :hug:

 

[Libby]

Hi, I've done mine slightly differently. I have a map which shows 3 bands A, B and C. A is approx a 10 mile radius and has no extra charge, B is about a 15 mile radius and is an extra £3 and C is about 20 miles and is an extra £6. You can have a look if you want Smart Nails - Mobile Nail Services for Cottenham click on 'mobile coverage'

I like this idea too and hope you don't mind if I copy your idea :biggrin: thank you x

 

[Lisam-mobile]

Did you know that you can claim back mileage against your business? My accountant told me this!!! As long as you keep a record of all the places you drove to (appointment book is fine - with locations jotted somewhere) then you can claim per mile! Sometimes I could kiss my accountant! :hug:

Sweetcheeks, when you say 'claim back' what do you mean? The way I understand it is that you only pay tax on your profits so once you take your mileage out of the equation, you're not paying tax on that amount.

 

[Sweetcheeks]

Sweetcheeks, when you say 'claim back' what do you mean? The way I understand it is that you only pay tax on your profits so once you take your mileage out of the equation, you're not paying tax on that amount.

I understood it as (could be wrong though!) that the more stock etc you have brought - the less tax you will pay and mileage falls into this category x

 

[Lisam-mobile]

I understood it as (could be wrong though!) that the more stock etc you have brought - the less tax you will pay and mileage falls into this category x

Yeah, that's how I understand it. Thanks!

 

[Sweetcheeks]

Yeah, that's how I understand it. Thanks!

No problem! I'm glad that I didn't dream it up! Lol

 

[muddi]

Yup that's right, as of April 2011 you can claim 45p per mile. Last year it was 40p per mile.

 

[pinkgirlie]

Yup that's right, as of April 2011 you can claim 45p per mile. Last year it was 40p per mile.

I did a business start up course a month ago, they told me 45p per mile too

 

[Sweetcheeks]

Fab, thank you ladies x