Fuel Expenses

[KenW]

Good afternoon all!

I have been having a look around (and forgive me if there is something there about this but I have missed it) to see if I can find any clarity over fuel expenses. I have found threads about leased cars etc but nothing for personal cars and mileage. One of my colleagues claims 40p per mile on his personal car and puts this through his Ltd company as an expense. Another one of my colleagues only claims 10p per mile. So I am not sure how much you can take. I have readt threads relating to the first 10,000 miles etc but I cant work out what (if anything) I am entitled to claim back through my Ltd company for fuel. I dont think there is any point in leasing a car through the company so I just wondered if my fuel costs were a ligitimate expense?

Thanks in Advance.

My understanding is that the Approved Mileage Allowance Payment (AMAP) of 40p per mile (ppm) is to cover all your mileage expenses so you cannot then claim for fuel separately. If you are using your own car, the main things to remember are:
- 40ppm for the first 10,000 miles then 25ppm
- you can claim for journeys by van, motorbike and bicycle too
- no need to record the annual claim amount on the p11d as long as you don't exceed the AMAP rate
- don't pay yourself more than this because you will have to pay tax and National Insurance on it as well as add it to your p11d
- if you employ anyone else, you can claim up to 5ppm for carrying them as a passenger, as long as you are all travelling on the same business trip
- use your home as a base when calculating the distance to work, HMRC will treat the trip as business travel (and not a commute) as long as you do not expect to be travelling this route for more than 2 years. As soon as you do, contact your accountant and get advice.
- keep a log of all the business trips. You need to log the date, the from and to locations, the reason and the distance.

Regarding your colleague only claiming 10ppm - he/she can claim the shortfall on their tax return i.e. 30ppm

[Wanderer]

Good post, KenW!

Regarding your colleague only claiming 10ppm - he/she can claim the shortfall on their tax return i.e. 30ppm

It is likely that the colleague has a fully expensed company vehicle and they only pay for fuel which is what the 10ppm is supposed to cover (almost). If you use your own vehicle which you brought, taxed, insured, service yourself then you claim the full 40p per mile. (24p for a motorbike, 20p for a bicycle if I remember correctly)

[Billy Pilgrim]

With about 5 seconds of effort i was able to find a whole host of information, not just on this but on a range of questions you will post at somepoint..

Here

Guide to

In fact bugger it...

Here is the search result I used... Happy reading...

Google search

Well I never knew that ....

"If you are traveling to work as a passenger in a car you are entitled to claim 5p per mile."