I have read on this site that business mileage can be claimed at either 25p or 40p per mile. I haven't though been able to read specifically why these rates differ and how this applies, other than HMRC guidelines. I will ask my accountant next week but if anyone can offer any guidance, would be much appreciated.
-
______________________
Don't get mad...get even... -
Its 40p per mile for the first 10k miles in a tax year and then 25p per mile thereafter. It goes back to 40p per mile in the next tax year when the mileage is reset to zero again. -
Exactly what Craig said.Originally posted by Craig@InTouch View Post
40p per mile for the first 10,000 miles in a tax year (I work off the tax year even if it's not in the rules as it's easier)
25p per mile over 10,000
That assumes you're using your own car and buying the fuel yourself of course.Comment
-
Agreed. Nowt to add except that if you pay only the approved amounts no need to declare them on P11D.
HM Revenue & Customs: Mileage expenses for business travel in employees? own vehiclesbloggoth
If everything isn't black and white, I say, 'Why the hell not?'
John Wayne (My guru, not to be confused with my beloved prophet Jeremy Clarkson)Comment
-
Is it better to claim the mileage or claim back the petrol with VAT. Do you have a choice or is it mileage only?Originally posted by TykeMerc View Post
At which point do you get eventually get taxed for mileage or is it open ended?What happens in General, stays in General.You know what they say about assumptions!Comment
-
Not that I do much private mileage, but claiming fuel makes no sense, while it's horribly expensive that wouldn't even contribute to the other costs of business mileage. On the VAT Fixed Rate Scheme I'm not aware of a way to claim the VAT separately plus there used to be a scale charge you had to deduct from the reclaimed VAT. The 40p/25p rate is all that can be expensed with the ordinary approach.Originally posted by MarillionFan View Post
As it's an expense then it's not subject to tax as income and it's a cost to the business so not profit to be taxed.Comment
-
Open ended mileage.Originally posted by MarillionFan View Post
You can reclaim the VAT element of the petrol in the 40p per mile, you just need to keep a vat receipt to cover the correct amount. Use the fuel rates here to see what you can claim: HM Revenue & Customs: Company cars - advisory fuel rates from 1 December 2010
Currently around 3p per mile. I do 10,000 business miles a year so another £300 a year for me. It is quite a hassle to keep that many business receipts but for many contractors that is another days pay and doesn't take a day to organise.
Almost always better to do 40p/25p per mile claiming than anything else if you do decent mileage and have a car that doesn't cost near that to run.Last edited by Sockpuppet; 21 February 2011, 09:05.Comment
-
Remember that the 10,000 rate of 40p starts at the start of each new tax year AND each new employment.Originally posted by kaiser78 View Post
So if you have been with a brolly and then start your own company, you can claim the first 10,000 with your limited company at 40p per mile.
This can be worth remembering!
AlanComment
-
Indeed, I'd forgotten that and it was Adele that pointed that out to me when I set up the new Ltd and I was working a looong way from home. It was a nice unexpected bonus.Originally posted by Nixon Williams View PostComment
-
Im sure a lot of your forget that if you claim £300 a month towards mileage from your company that is £300 less dividend you can take.
All you are really saving is the tax element of the dividend, 21% or the higher rate.
So when you now say £63 a month, who can run a car on that? That doesnt even cover 3/4 of my diesel.Comment
Comment