Claiming mileage from clientco

**Craig@Clarity** · 15 December 2010, 10:20

You can personally reclaim the 40p per mile from your own Ltd company (providing that you are below the 10,000 miles in this tax year). Recharging the travel costs to your client is a separate issue. If you are unhappy with the amount you are allowed to recharge then I would suggest a harder negotiation. Alternatively, will they allow you to recharge the full train fare and taxi fare to site?

**gricerboy** · 15 December 2010, 10:24

Originally posted by Craig@InTouch View Post

You can personally reclaim the 40p per mile from your own Ltd company (providing that you are below the 10,000 miles in this tax year). Recharging the travel costs to your client is a separate issue. If you are unhappy with the amount you are allowed to recharge then I would suggest a harder negotiation. Alternatively, will they allow you to recharge the full train fare and taxi fare to site?

But if I claim it from my own co. it's me who is taking the hit, not them. Guess I'll have to negotiate then.

**yorkshireman** · 15 December 2010, 10:32

Originally posted by gricerboy View Post

But if I claim it from my own co. it's me who is taking the hit, not them. Guess I'll have to negotiate then.

At least it reduces your Corporation Tax though

**craig1** · 15 December 2010, 10:40

It sounds as if they have a number of permies who get extra money in their pay packets for personal lease cars then reclaim essentially petrol-only expenses. Ask them if that's the case, if so, remind them that this is your car, not a permie's way of avoiding company car tax. I always have mileage in my contracts at the full HMRC rate (allows for changes by HMRC), if you don't have mileage rates in your contract then it's down to negotiation, I'd stick to my guns charge expenses at 40ppm. I did come down to 32ppm once as that's the rate they paid their permies with their own car and it wasn't worth sticking out and being awkward for that extra 8ppm.

**northernladuk** · 15 December 2010, 10:53

Is this a one off or something that would be happening regularly?

If it is a one off I would personally I would seriously consider just doing it and using either 40ppm from Ltd of 14ppm from client and swallow it (which ever is most profitable). Of course ask but I wouldn't push it.

In the long run 240 miles is hardly earth shattering and isn't going make any difference to depreciation etc etc. If you have a fairly economical car you arn't going to be out of pocket by much on their rate and will be ok with the 40ppm as well. It's not like you are actually paying for this.

It is a weight up of how much this is worth to you and how much of a problem you want to cause with your client.

Now if they want you to do it regularly then of course stick your heels in hard.

**mavster07** · 15 December 2010, 15:03

You could always refer to your contract and if its non-specific as to expenses reimbursement then advise the agency (assuming there is one) that you expense at 40p per mile as per the statutory requirement.

question: did the actual contract stipulate that travel was required ? If so, you are free to pass on whatever expenses are incurred in the delivery of that work. if the client wants to change it, ask them to provide an amended contract.

if you can't agree, either travel via the most expensive means possible (within their travel policy - trains, taxi's etc) and bill them for travel time. Either that or don't travel.

**Wanderer** · 16 December 2010, 00:20

Originally posted by gricerboy View Post

they only pay 14p per statutory mile as opposed to the 40p per mile I would normally expect to be reimbursed. Should I dig my heels in and insist on my 40p?

There ain't no way you can run a vehicle for 14p a mile. That amounts to 37 MPG for fuel alone. They are thinking of the company cars that they supply to their permies and pay them 14p to cover petrol. You've got to run your own vehicle so it's 40p per mile as per HMRC's guidelines (which were set when fuel was 30% cheaper), thank you very much.

If you didn't drive, would they pay you the train/taxi fares? I'm sure they would be much more and they would take a lot longer too.

But as northernladuk says - if it's a one off then I'd be inclined to just take it on the chin. In fact, I'd rather swallow a one off cost than accept expenses and set a precedent that you are willing to accept a BS rate for mileage....

Claiming mileage from clientco