Yearly mileage limits - job specific?

[gadgetman]

As mentioned in another post I am about to start a contract which will involve claiming a fair amount of mileage using the 40p standard rate.

However in my current (perm) role I have done just over 10,000 miles so far this year for which they paid me 40p / mile up to 6000 miles then 25p after that.

I intend to claim back the remaining 15p on 4000 miles (£600 if my maths is right) at the end of the tax year. Does this mean that I've reached the 10,000 threshold for this tax year and will only be able to claim at a lower rate on my contract (25p?) or does my move to a contract and operating via my own Limited Company 'reset' the clock?

[VectraMan]

IANAA, but it's a personal limit, nothing to do with with who you work for.

[Sockpuppet]

As mentioned in another post I am about to start a contract which will involve claiming a fair amount of mileage using the 40p standard rate.

However in my current (perm) role I have done just over 10,000 miles so far this year for which they paid me 40p / mile up to 6000 miles then 25p after that.

I intend to claim back the remaining 15p on 4000 miles (£600 if my maths is right) at the end of the tax year. Does this mean that I've reached the 10,000 threshold for this tax year and will only be able to claim at a lower rate on my contract (25p?) or does my move to a contract and operating via my own Limited Company 'reset' the clock?

It would be better to claim the next 4000 miles at 40p as you can have upto 10,000 miles @ 40p ... 25p thereafter. You only claim the income tax back on the £600 not all of it so you'd only see £250 of that maybe.

Just blanket charge 40p/mile to the client. When you reach 10,000 claim 25p for yourself and the rest as profit to the comapny.

[Nixon Williams]

If you charge your client this has nothing to do with what you calim back from your own company.

The limit is personal so as you have reached 10,000 miles you can only claim 25p per mile until the clock resets on 6th April.

The "lost" income you have on the 4000 miles should be reclaimed via your personal tax return. In the employment section of the company that paid the reduced mileage.

I hope this helps you.

Alan

[gadgetman]

Thanks for the replies, that's pretty clear then.

[dmini]

The limit is personal so as you have reached 10,000 miles you can only claim 25p per mile until the clock resets on 6th April.

I read on the HMRC site the following

If you have two or more employments that are associated then your business travel for both is added together to work out when you are no longer entitled to the higher mileage rate for business mileage in a car or van for that tax year.

Employments are associated if they are

with the same employer, or
with different employers who are under the same control, for example, two different companies in the same group of companies.
If the employments are not associated you are entitled to the higher mileage rate for business mileage travelled in each employment as though you did not hold the other employment.
***********************


This suggests the direct opposite of what you have said - ie if you have two UNRELATED jobs - ie permie with one company, then contract somewhere completely different, then you CAN claim two full allowances of 10,000 miles at the higher rate.
Advice please?

[Sockpuppet]

I'd advise you go 10000 @ 40 then 25p thereafter.

Its the safest way.

You can still charge the client @ 40p / mile and take the rest as profit so you still get it either way.

[gadgetman]

This is interesting. Do you have a link to this page please?

EDIT:

Found it:
http://www.hmrc.gov.uk/mileage/employee-factsheet.htm

This does indeed contradict the above advice. Anyone else care to comment?

I read on the HMRC site the following

If you have two or more employments that are associated then your business travel for both is added together to work out when you are no longer entitled to the higher mileage rate for business mileage in a car or van for that tax year.

Employments are associated if they are

with the same employer, or
with different employers who are under the same control, for example, two different companies in the same group of companies.
If the employments are not associated you are entitled to the higher mileage rate for business mileage travelled in each employment as though you did not hold the other employment.
***********************


This suggests the direct opposite of what you have said - ie if you have two UNRELATED jobs - ie permie with one company, then contract somewhere completely different, then you CAN claim two full allowances of 10,000 miles at the higher rate.
Advice please?