Business Mileage Rate - 25p/40p

[MarillionFan]

No worries. Its b.

So 10000 x £0.40 to MF = £4000. That is sorted and correct.

You have a 2000cc Petrol car so fuel element is: 15p per mile (changed every 6 months, next change march 1st).

So 10000 x £0.15 = £1500

VAT on £1500 is £300.

You only need to keep £1500 worth of petrol receipts, not receipts for all the fuel you buy.

As for recording it if you use sage or another accounting program I'd do 2 entries.

£1500 Fuel Element Of Mileage @ 20% VAT
£2500 Non Fuel Element of Mileage @ 0% VAT

otherwise just do £4000 with vat of £300 = 7.5% VAT. You could do that if you used an accounting program but it'll probably winge if the vat is not 0%, 5% or 20%. Also good to show what fuel element of miles claimed is.

Sockpuppet

SP. You are a bloody star! Cheers

MF

[manclarky]

Its 40p per mile for the first 10k miles in a tax year and then 25p per mile thereafter

Ahem, going back to topic, would it matter if the car in question ran on petrol / diesel / lpg / vegetable oil / electric / hybrid etc?

I currently have a diesel and do almost 700 miles a week - a not inconsiderable cost, but cheaper than the petrol car I used to have.

However, if (for example) I purchased a new-fangled Nissan Leaf (wouldn't manage the round trip on a full battery, so a moot point) would I still be able to claim 40p/25p even though there's no fuel costs?

[the_rangdo]

Mileage isn't just about fuel, it's to contribute towards the total running cost of the car - fuel, servicing, wear/tear consumables like tyres, etc.

[TykeMerc]

I've no idea how electric cars are treated for expenses, but the fuel certainly wouldn't be free even if you could do the round trip on a charge.

How you would account for the not inconsiderable electricity cost could get quite complicated.

[SueEllen]

I've no idea how electric cars are treated for expenses, but the fuel certainly wouldn't be free even if you could do the round trip on a charge.

There isn't a separate category for electric cars in HMRC booklet 480 under the mileage amounts.

However I presume that the vehicle has to actually be a car to be covered as I know some electric "cars" on the market aren't actually officially cars.

[MarillionFan]

I was under the impression you could claim mileage if you cycled as well?

[Clare@InTouch]

I was under the impression you could claim mileage if you cycled as well?

You can, at 20p per mile.

HM Revenue & Customs: Travel - mileage and fuel allowances

[SueEllen]

I was under the impression you could claim mileage if you cycled as well?

Yep you can. It's 20p per mile.

Motorcyles are 24p per mile

And it's 5p per mile if you have a passenger in a car or van only

[VectraMan]

You can, at 20p per mile.

I thought it was more like 5p per mile. That seems more than a little unfair.

[SueEllen]

I thought it was more like 5p per mile. That seems more than a little unfair.

It's green ain't it.