Mileage rates
Jan 20, 2017 07:42:06 #
billnikon
Loc: Pennsylvania/Ohio/Florida/Maui/Oregon/Vermont
Barbershots wrote:
Fellow Hoggers
I am beginning to have more requests for jobs out of town what do you charge for mileage and is it one-way or round-trip......inquiring minds
I am beginning to have more requests for jobs out of town what do you charge for mileage and is it one-way or round-trip......inquiring minds
I only charged by the job. Mileage was not a consideration. Unless it was more than 50 miles, in that case I would respectfully decline.
Jan 20, 2017 07:50:52 #
Rongnongno wrote:
Usually you have a free 'acceptable distance' to a... (show quote)
Actually it is also a standard reimbursement rate in many occupations-- and often is used for billing clients.
Jan 20, 2017 08:12:18 #
Barbershots wrote:
Fellow Hoggers
I am beginning to have more requests for jobs out of town what do you charge for mileage and is it one-way or round-trip......inquiring minds
I am beginning to have more requests for jobs out of town what do you charge for mileage and is it one-way or round-trip......inquiring minds
Advice from someone who has never been a pro, but have been a client. Don't nickel and dime your clients, all you will do is piss them off and it will cost a good referal. Just build it into the price, and don't mention the travel cost. How far away the job is matters also. Are we talking about several hours one way? If it's less than an hour forget charging. If several hours, charging for your time is reasonable. Forget the mileage just charge your hourly time. A 2 or 3 hour drive each way is 1/2 a day. Purely my opinion
Jan 20, 2017 08:14:04 #
Depends if you are driving a Cooper or a Mercedes. If you don't want to make a decent profit, charge just one way.
Jan 20, 2017 08:32:23 #
LoneRangeFinder wrote:
Actually it is also a standard reimbursement rate in many occupations-- and often is used for billing clients.
One can do whatever, the DOD does use that too BUT they are not for profit organization so there is a notable difference to start with. Also this rate is variable not a 'fixed' number. Then it applies for ALL vehicle used by a business from a car to a truck...
So, no, using that rate is a $$$ mistake. Sorry.
Jan 20, 2017 08:48:32 #
Barbershots wrote:
Fellow Hoggers
I am beginning to have more requests for jobs out of town what do you charge for mileage and is it one-way or round-trip......inquiring minds
I am beginning to have more requests for jobs out of town what do you charge for mileage and is it one-way or round-trip......inquiring minds
If it's a significant job, I would forget about a mileage charge. If your car gets 25 mpg, and you drive 100 miles, that costs maybe $12. Insignificant. It's a cost of doing business.
Jan 20, 2017 08:57:09 #
jerryc41 wrote:
If it's a significant job, I would forget about a mileage charge. If your car gets 25 mpg, and you drive 100 miles, that costs maybe $12. Insignificant. It's a cost of doing business.
+ Insurance
+ wear and tear
+ cost of not being active (most expensive)
+ tolls where it applies
+ ...
No, this is not the answer, too simplistic. Yes, part in 'business expense' but you have to be really careful when you chalk anything under that 'do-it-all' category.
Jan 20, 2017 09:15:54 #
Rongnongno wrote:
Usually you have a free 'acceptable distance' to a... (show quote)
Yep! You have to pay employees at least the prevailing minimum wage for drive time. So it is fair to charge a fee that covers ALL costs for remote work. Just be clear about that up front when you agree to do business.
Jan 20, 2017 09:58:57 #
Barbershots wrote:
Fellow Hoggers
I am beginning to have more requests for jobs out of town what do you charge for mileage and is it one-way or round-trip......inquiring minds
I am beginning to have more requests for jobs out of town what do you charge for mileage and is it one-way or round-trip......inquiring minds
It depends on how far out of town. As an example... I live in Clearwater Fl. Technically, Largo, Seminole, Dunedin, Tarpon Springs, St Petersburg and Tampa are out of town but some are less than 5 miles away and Dunedin is 2 miles away. For me, if the shoot is in Pinellas county, I don't charge mileage. Tampa depends but what I do is rather than have a set fee, I give an estimate when the people ask. I look at the photo shoot, how many pics I'm going to have to shoot and where it is then offer a price that includes a basic group of 5x7 and 8x10 pics. Then they can look at the images that I shot and choose more or different sizes from that. My base price includes the travel if necessary. So, I might give a price to someone in Clearwater of $25 for a shoot and the same shoot in Venice Fl. might be $50 (its about an hour and a half drive and $2 in tolls each way for the Venice shoot so I include that in my bid.
Jan 20, 2017 11:17:53 #
It may have been mentioned here already but it should be clarified that what the IRS will allow you to claim on your tax return is not what is being discussed here. What you choose to charge for travel is entirely up to you, based on the job. I typically, do not charge a travel fee unless it's more than a half day round trip, and that's per person; myself , assistants, etc. If it's not for an actual job, but a go-see or interview, I do not charge the client - it's a marketing cost and has tax deduction implications.
Jan 20, 2017 11:40:35 #
Toby wrote:
The IRS rate for 2017 is $ .535 per mile for businesses. I see no reason that you shouldn't charge for both ways. Many also charge an hourly rate for drive time although I doubt if you can get away with that for a photography business.
That's exactly what I do and I also do my best to figure some down time (aka drive time) into my proposal whenever I can.
Jan 20, 2017 11:58:55 #
In my consulting business contracts I use the GSA reimbursement rates for mileage and meals. The IRS rules are for tax on issues which has nothing to do with this. Right now the GSA rate is 0.54 per mile in a private vehicle.
Jan 20, 2017 12:46:05 #
Like many forum topics, the answers are all over the place. It depends on your business model and how you deal with your customers.
I’m a consultant in a technical field, and now travel farther afield than ever, with clients around the country. For some residential or small projects, the travel costs of time and expense are wrapped into a package price. No need to haggle over cents per mile, etc. For larger projects where I charge hourly or daily rates, the miles and time are estimated and quoted in the contract. Half-time (one way) or full travel time or some other rate is up to you. Also, to be fair, I use a good mapping app to get the distance and drive time, then use those figures for my estimates and billing. This eliminates time spent in traffic jams, rest stops, airport delays, etc. Costs me some time occasionally, but makes it easier for the client to budget. Longer trips get rest or meal stops built in, if it isn’t a daily rate. For tolls, I either bill directly at cost on contract jobs, or just absorb it within the travel time fees.
I’m a consultant in a technical field, and now travel farther afield than ever, with clients around the country. For some residential or small projects, the travel costs of time and expense are wrapped into a package price. No need to haggle over cents per mile, etc. For larger projects where I charge hourly or daily rates, the miles and time are estimated and quoted in the contract. Half-time (one way) or full travel time or some other rate is up to you. Also, to be fair, I use a good mapping app to get the distance and drive time, then use those figures for my estimates and billing. This eliminates time spent in traffic jams, rest stops, airport delays, etc. Costs me some time occasionally, but makes it easier for the client to budget. Longer trips get rest or meal stops built in, if it isn’t a daily rate. For tolls, I either bill directly at cost on contract jobs, or just absorb it within the travel time fees.
Jan 20, 2017 12:59:14 #
I do not charge my customers mileage.
I deduct 'mileage allowance' on the debit side of my account. In the UK one can 'claim' mileage OR depreciation not both. I state that my car is used 90% for business use, so claim 90 of the cost of car insurance, road tax and MOT repairs etc. (It is an old car - a new car depreciates faster!)
We have two cars so this is believable.
This reduces my profit significantly rather than 'P'ing off my customers for an extra couple of pounds. (which is then income if it is rounded up in your invoice)
Profit is all the Tax man is interested in.....low profit = low tax bill.
at .45p per mile(Tax Figure) and petrol at £1.17per litre I gain £1.53 for every six miles travelled. Last year I travelled 4,000 business miles. so 'earned just over £900 tax free plus have the use of my car for just 10% of the costs.
Been doing that for 17 years and both the accountant and tax office are happy. (touch wood).
You have to be creative when skinning cats!
have fun
I deduct 'mileage allowance' on the debit side of my account. In the UK one can 'claim' mileage OR depreciation not both. I state that my car is used 90% for business use, so claim 90 of the cost of car insurance, road tax and MOT repairs etc. (It is an old car - a new car depreciates faster!)
We have two cars so this is believable.
This reduces my profit significantly rather than 'P'ing off my customers for an extra couple of pounds. (which is then income if it is rounded up in your invoice)
Profit is all the Tax man is interested in.....low profit = low tax bill.
at .45p per mile(Tax Figure) and petrol at £1.17per litre I gain £1.53 for every six miles travelled. Last year I travelled 4,000 business miles. so 'earned just over £900 tax free plus have the use of my car for just 10% of the costs.
Been doing that for 17 years and both the accountant and tax office are happy. (touch wood).
You have to be creative when skinning cats!
have fun
Jan 20, 2017 16:40:40 #
DavidPine
Loc: Fredericksburg, TX
I use a flat fee based on how much travel time is involved. My fee is based on how I feel about it and how much I want the shoot when I am booking a job.
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