Mileage - Only with Company Car ?

[poster2034]

Hi,

I've spoken one of the 'contractor friendly' accountants on here, they have said that mileage expense to and from place of work are only allowed if driving in a company car, i.e. a car purchased in the company name. They also said that they wouldn't recommend buying a car in that way, because of additional taxes incurred.

Can you really not claim mileage if you use your personal car for the business trips ? I thought 'everyone did' . Maybe I was wrong or the rules have changed ?

[WTFH]

Hi,

I've spoken one of the 'contractor friendly' accountants on here, they have said that mileage expense to and from place of work are only allowed if driving in a company car, i.e. a car purchased in the company name. They also said that they wouldn't recommend buying a car in that way, because of additional taxes incurred.

Can you really not claim mileage if you use your personal car for the business trips ? I thought 'everyone did' . Maybe I was wrong or the rules have changed ?

You can claim mileage off the client on business trips where the trips are not to/from the site address listed on your contract. So if the client asks you to go to another location for a meeting, then you can claim for the difference.
(at least that's my understanding, I could well be wrong)

[Kenny@MyAccountantFriend]

No that is not the case you can claim mileage for business related journeys including from home to client site if not caught by the 24 month rule in a personal car.

I agree I generally would not recommend a company car.

[DaveB]

Hi,

I've spoken one of the 'contractor friendly' accountants on here, they have said that mileage expense to and from place of work are only allowed if driving in a company car, i.e. a car purchased in the company name. They also said that they wouldn't recommend buying a car in that way, because of additional taxes incurred.

Can you really not claim mileage if you use your personal car for the business trips ? I thought 'everyone did' . Maybe I was wrong or the rules have changed ?

I would challenge that. Certainly my understanding, and advice from my accountant, has always been that milage to and from MyCo. offices to Client Co. in a private vehicle are claimable at the standard rates.

[northernladuk]

Just to be pedantic it's travel from your permanent place of work to your temporary location which is allowable as it's a business trip.
That temporary location does however become your permanent location as soon as you know you will be there for 24 months, regardless of number of clients. It's location related, not client.

[poster2034]

Mileage

Thanks for the Info.


Just to put context on it. I'm from London, will be driving 'Up North' to place of work, on a Monday, staying in hotels and coming back on a Friday.

The accountant didn't deny that I couldn't claim mileage for the business trips, i.e. driving there and back on Monday/Fridays and from hotel to work whilst there. BUT they were adamant that any Petrol Mileage could ONLY be expensed if it was a company car ?!?!? Is that really true. If I drive in a personal car, then I can not expense any petrol, according to the accountant

[northernladuk]

Drop them an email and ask them to explain the reasoning very clearly with links to references for clarity. You shouldn't accept an answer until you are 100% confident you understand and agree. There could be something he knows that we don't although that doesn't seem likely in this instance.

[WTFH]

The accountant didn't deny that I couldn't claim mileage for the business trips, i.e. driving there and back on Monday/Fridays and from hotel to work whilst there. BUT they were adamant that any Petrol Mileage could ONLY be expensed if it was a company car ?!?!? Is that really true. If I drive in a personal car, then I can not expense any petrol, according to the accountant

You say you can claim mileage, but you can't claim "petrol mileage". Sorry, can you explain what you mean as "petrol mileage" compared with "mileage"?

[Kenny@MyAccountantFriend]

Thanks for the Info.


The accountant didn't deny that I couldn't claim mileage for the business trips, i.e. driving there and back on Monday/Fridays and from hotel to work whilst there. BUT they were adamant that any Petrol Mileage could ONLY be expensed if it was a company car ?!?!? Is that really true. If I drive in a personal car, then I can not expense any petrol, according to the accountant

The issue seems to be regarding claiming petrol costs as these can only be claimed for a company car (if applying a fuel benefit), instead you should be claiming mileage at 45p per mile for the first 10,000 miles each year and then 25p per mile if you exceed 10,000 miles.

[poster2034]

Mileage

Just to clarify. I've been told I can not expense any petrol used on business trips if using a personal car. So I can't claim the 45p per mile (for first 10,000 miles). Just read the above. I need to get back to the accountants and clarify. Maybe there was some mis-communication !