Claiming Mileage through my Ltd Company

[TheCyclingProgrammer]

When you were a permie your employer would have had a dispensation in place. Easy enough to apply for - form must be on HMRC.gov.uk somewhere

Yes, any employer who processes a lot of travel expenses will almost certainly have a dispensation. You can apply online - I did. You need to specify what it covers, in my case business travel, subsistence, and business calls on a personal phone.

The reporting requirement is the same regardless of whether you are reimbursed or YourCo pays directly.

If you have a lot of P11D stuff a dispensation is worth getting as it reduces paperwork (you don't need to send a nil P11D) and it reduces the chance of HMRC tax code mess ups.

Remember as pointed out earlier that AMAP mileage payments are exempt up to the limits so not reportable anyway.

[SueEllen]

This is news to me. When I was a permie I claimed business travel expenses every month for years and it was never reported on my P11D or on my tax return. So I've carried on this way since I became a LtdCo contractor. How does one get dispensation anyway?

Google "HMRC dispensation" or ask your accountant.

[SarahL2012]

When you were a permie your employer would have had a dispensation in place. Easy enough to apply for - form must be on HMRC.gov.uk somewhere

[Andy O]

I don't pay tax on business travel either but the fact remains that any payments need reporting on your P11d and tax relief needs to be claimed on your tax return, unless you have a dispensation (I do).

This is news to me. When I was a permie I claimed business travel expenses every month for years and it was never reported on my P11D or on my tax return. So I've carried on this way since I became a LtdCo contractor. How does one get dispensation anyway?

[TheCyclingProgrammer]

I certainly don't pay tax on travel and subs, but then again I do pay a decent accountant to advise me on the most tax efficient methods of running my business!

I don't pay tax on business travel either but the fact remains that any payments need reporting on your P11d and tax relief needs to be claimed on your tax return, unless you have a dispensation (I do).

[ceebeepps]

travel and subsistence expense payments have to be reported on your P11D (unless you have a dispensation) and are taxable on you personally unless you claim tax relief on your self assessment.

I certainly don't pay tax on travel and subs, but then again I do pay a decent accountant to advise me on the most tax efficient methods of running my business!

[TheCyclingProgrammer]

Thanks for the reply.
Would this be the same for subsistence.
Cheers

Not quite. Unlike mileage, which is exempt from tax up to the previously mentioned limits and rates and therefore not taxed or reported, travel and subsistence expense payments have to be reported on your P11D (unless you have a dispensation) and are taxable on you personally unless you claim tax relief on your self assessment.

[northernladuk]

You not got an accountant or something?

[Kenny@MyAccountantFriend]

Yea and all other business related expenses.

[norush]

Hi

You would claim the mileage as an expense to your ltd company and claim the 45p per mile for the first 10,000 miles and then 25p per mile thereafter each year.

The mileage would not appear on your self assessment and instead be an allowable expense for the company saving you 20% in corporation tax on the amount claimed.

Salary is also separate.

Thanks for the reply.
Would this be the same for subsistence.
Cheers

[Kenny@MyAccountantFriend]

Hi

You would claim the mileage as an expense to your ltd company and claim the 45p per mile for the first 10,000 miles and then 25p per mile thereafter each year.

The mileage would not appear on your self assessment and instead be an allowable expense for the company saving you 20% in corporation tax on the amount claimed.

Salary is also separate.

[norush]

Hi Folks.
New to this Forum and after some advice.
I have recently formed a Ltd Company because I believe I have been ripped off by my Payroll company since they changed me to PAYE. Was fine under CIS.
Anyway, done some reading and notice that most people pay themselves from there LTD company just below the Personal allowance and then the rest in Dividends.
I have been paid into my Business account for 3 weeks now. I have not had to pay myself yet as my payroll company owed me Holiday pay that I had accrued.

The query is. I have several allowable mileage expenses each week.
If I pay myself below the Personal allowance, If I do a tax return at the end of the year I wont be able to claim this allowance back as I have not paid any Tax to claim back.

Do I therefore need to pay myself the personal allowance (I'll be paying myself Monthly) + what my mileage would amount to over that Month. I would therefore pay tax on this amount and then claim it back on my tax return at the end of the year.

Any Help appreciated