Fuel Expenses

[ads1980]

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.

[rmmc]

You can claim 40p for first 10,000 miles and 25p per mile there after. This is for using your personal car for the business purpose. It is legitimate and tax free too. As long as you pay within authrised rates you do not need to pay tax on it. Also for company it is allowable expense.

However you can pay in excess of authorised mileage rate 40p/25p but the excess should be reported on P11D, company pays Class1A and you pay tax on it.

[DaveB]

Leasing and company cars don't really work for contractor ltd's.

You can claim milage allowances for use of your personal car at up to 40p per mile for the first 10,000 miles and 25p per mile after that.

These are the tax free allowances permitted by HMRC. You can claim more but would have to pay tax on anything over the 40/25p cap.

The milage counter resets at the start of each financial year.

[cojak]

And you'll need an associated fuel VAT receipt to present as well (at least that's what my accountant needs...)

[northernladuk]

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.

Do you have an accountant? I would have thought he would have provided you with basic details and if he hasn't I am sure he can.

Are you going through a brolly or your LTD? Brolly's normally have very good guides on what you can and can't claim through them

This is pretty basic information that can be found all over the place. If you are going to be asking every question about basic contractor finances you are going to be racking up alot of posts and flames.

have you checked HMRC site for the guides on all this?

[The Wikir Man]

Leasing and company cars don't really work for contractor ltd's.

High cost, low emissions make good company cars, IIRC.

I think that if you want a ratty hatchback, then that might work as well - have a search on CUK for ratty and car, and there is a very old thread about leasing a BMW.

[ads1980]

I have checked around and I am only conscious because two of my colleagues claim different amounts.

The above posts have confirmed what I found for the 40p per mile for 10,000 miles.

[cojak]

I claim 40p per mile. It would be interesting to know why your colleague claims 10p (very low day rate and can walk to work at a push maybe...)

Unless the clientco expenses at 10p per mile. I claim 40p per mile from my Ltd and my Ltd will claim whatever the allowance is with the clientco.

So your colleague maybe using an umbrella as I don't know how that works...

[DaveB]

And you'll need an associated fuel VAT receipt to present as well (at least that's what my accountant needs...)

Not if you are on the FRS. Just a log of milage.

[northernladuk]

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