The hmrc rates take into account the reduced cost per mile for higher mileage by reducing the rate above 10,000 business miles. The fact that the employee is providing the car and is having to pay the associated costs involved should be taken into account. If the employee's car was not being used then the employer would have to provide a vehicle which would have a cost. If providing a car for business use is a cheaper option than paying the hmrc mileage allowance then the employer has that choice.

If one looks at the cost per mile running costs given in most motoring magazines the cost is normally over 45p per mile by the time cost of finance and depreciation is included. Remember there are never problems, just new challenges

The calculations from oop North are based on occasional business use.
What about those of us who do less than 5K private, but more than 30K business in our own cars?

A previous employer was offering 40p/mile when I bought the first FL, this came slowly down to 15p/mile in the following 3 years. Turns out he was being hammered by the leasing companies when we were sending lease cars back with 140K plus on them - so give the employees a "perk" and get them to buy there own cars and run them into the ground (2year old FL1 with over 100K on the clock).

The he realised once you had bought the car you had to keep it as no-one wants to pay Tax for a company car and the HP on a car they had bought for work. Oh and the 15p per mile - he could claim the VAT back on the fuel WE bought - so from being hammered he got us to pay for the mileage and cars. Tangiers Orange - gone, missing her
Replaced by Ewok what a mistake - now a happy Disco Sport owner

Andy131 - the principles are the same irrespective of the ratio of private to business miles, but the higher the ratio of business to private the less inaccurate using total costs will be. Someone doing 30k business miles would almost certainly be better off in a company car - it's complicated by a stingy employer dumping the cost on employees