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kilometers
I have been doing photography work in toronto canada. Wondering what would be a reasonable rate for charging a client for kilometers I drove my car 120 kilometers that day. Also what would be a reasonable rate to charge for fule?
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6 Replies
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I just stick to my hourly rate. It keeps things very simple.
Now time-travel.. that’s tough. My client is flying my to Fargo tomorrow to cover octoberfest. I land at 4:07pm with the event kicking off at 4pm and trade call set ups all afternoon before the shindig.
lol
Something tells me I’m gonna miss something.
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Here in the US the government has a standard rate for mileage reimbursement that we follow. I think it is 52 or 55 cents per mile. This reimbursement covers your driving cost, fuel etc. Generally you do not bill for fuel separately if you are using your own vehicle.
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ya looks like you are going to miss something. He pays me a day rate that is really low because it’s like a cooky cutter type of job. So what would i charge to the km and gas???
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Mike
does that price include gas and miles together (52 cents) . Do i charge one rate for both?
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Current rate from the IRS is 55 cents a mile. That covers all of your automobile expenses. Anything you decide to charge for your time is between you and the client.
The IRS rate is what you can claim as an expense.
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You’ll have to do the Km/Miles conversion, but I charge $.55 per mile (as Mike said the US gov reimbursement rate) for vehicle use on anything over 40 miles round trip – so I don’t bill for local travel directly. This does not include tolls, parking, or other per-diem. The local stuff has mileage built into the price I quote for the shoot, when I know there’s lot of driving, I make it a visible line item, just like a hotel bill (if the client isn’t paying it directly).
Mileage is not an intangible and should be a line item when you are figuring up your bids and should be stated in a scope of work/contract/agreement so there’s no question later. It adds up fast.
And if you think about it, you have a client 50 miles away – that’s 100 round trip. You have 5 meetings with them, now 500 miles. At $.55 is $275 just for the use of the car. So if you don’t work that into your budget you are either giving that away if you are self-employed; losing profit if you reimburse employees and don’t have it figured in your profit line to begin with; or not correctly paying for company vehicles.
Now that I think about it, you have to have a consistent method of tracking vehicle expenses. It’s either a personal vehicle that the company reimburses you for mileage (or you take 1 deduction at the end of the year) OR it’s a company vehicle that tracks all of the expenses of gas, maintenance, washing,insurance, etc. and pays for all of that directly.
And don’t forget to check with your insurance company about business use of a personal vehicle.
My $.55 for the morning. (Oh, and be sure to confirm any statements with your attorney and tax adviser.)
Steve
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