Reply to: Mileage - Only with Company Car ?

[Martin Scroatman]

No that is not the case you can claim mileage for business related journeys including from home to client site if not caught by the 24 month rule in a personal car.

I agree I generally would not recommend a company car.

It'll be inneresting to see how the figures add up vis a vis company cars if/when the tax relief on T&S is abolished.

[SlipTheJab]

You say you can claim mileage, but you can't claim "petrol mileage". Sorry, can you explain what you mean as "petrol mileage" compared with "mileage"?

Diesel mileage is fine

[v8gaz]

Understatement of the day (or year).

"Mileage" and "petrol" are not the same thing. You cannot claim the money you spend on petrol. Instead, you can claim 45p per mile, which is a lot more.

That depends on what you're driving, greenie...

[Sausage Surprise]

Jeez...what a palaver
Some people are just NCOTBAC....

[expat]

Companies can have a "trading address" and a "registered address" which may and may not be the same building.

I know, mine does, and they are not even in the same country ("country" in the sense of company registration). That is why I deliberately didn't use either phrase in my post, because that is not the point here, the point is the difference between the permanent address of the company, and the temporary address of the work currently being done.

[SueEllen]

T

Also, do not confuse "driving from home to place of work" as you described it, with driving from permanent place of work" (= your Ltd Co trading address = undoubtedly the same building as happens to be your personal home) to "temporary place of work" (= client's site).

Companies can have a "trading address" and a "registered address" which may and may not be the same building.

[expat]

Just to clarify. I've been told I can not expense any petrol used on business trips if using a personal car. So I can't claim the 45p per mile (for first 10,000 miles). Just read the above. I need to get back to the accountants and clarify. Maybe there was some mis-communication !

These are two completely different things. There lies your difficulty of understanding.
No you can not expense any petrol.
Yes you can claim the 45p per mile. That is not a petrol expense.

Also, do not confuse "driving from home to place of work" as you described it, with driving from permanent place of work" (= your Ltd Co office = undoubtedly the same building as happens to be your personal home) to "temporary place of work" (= client's site).

This is a Ltd Company we are talking about here, which is a completely different entity from you personally. It is your personal affair how you get from your home to your Ltd Company's place of business (which is its registered address or normal place of business, i.e. your house, but in its role of company office, not in its role of your home). It is a business matter how you get from there to where you happen to be sent to work at the moment.

[Contreras]

Not an oddity. The FRS is the exception, whereby you cannot reclaim VAT on business costs, including reimbursing fuel costs.

Otherwise the company can reclaim the VAT element of fuel receipts reimbursed depended on the Fuel allowances involved.

Can I reclaim VAT on paying 45p mileage allowance? // TMT Accounting // Bristol

Well yes slightly odd that a business can reclaim VAT on a flat-rate allowance made to its employees to reimburse for their use of a private vehicle. Which other allowances can a business reclaim VAT on? Why restrict it to a notional percentage fuel element, and not the whole 45p for example?

HRMC guidance -

Input tax when fuel is purchased by employees

Input tax when employees are paid a mileage allowance

Edit1: Whilst the later (using flat rate allowance) makes no mention of receipts, I believe the article you linked to is conflating the two essentially correct on that point. Receipts (or other evidence) are required to reclaim the VAT, even though a car cannot run without fuel and receipts are not required for the mileage allowance itself, which is also an oddity.

All irrelevant for those of us on FRS.

Edit2: It might explain why umbrellas want to see VAT receipts against mileage claims.

[DaveB]

IIRC there is an oddity about being able to reclaim fuel VAT on mileage in a private vehicle but this does not apply for those of us on VAT FRS.

Not an oddity. The FRS is the exception, whereby you cannot reclaim VAT on business costs, including reimbursing fuel costs.

Otherwise the company can reclaim the VAT element of fuel receipts reimbursed depended on the Fuel allowances involved.

Can I reclaim VAT on paying 45p mileage allowance? // TMT Accounting // Bristol

[Contreras]

Just to clarify. I've been told I can not expense any petrol used on business trips if using a personal car. So I can't claim the 45p per mile (for first 10,000 miles). Just read the above. I need to get back to the accountants and clarify. Maybe there was some mis-communication !

Mileage allowance (45p/mile) is only if you use a privately owned vehicle. This is intended to reimburse you, at a flat rate, for all running costs including fuel and maintenance/repairs.

You cannot claim directly for petrol (or in fact any running cost) in a private vehicle because it's covered already by the 45p/mile.

For a company owned vehicle, petrol, maintenance & repairs are all paid for by the company and therefore you cannot claim the 45p/mile. There may also be a BiK element for personal use.

Capiche?

IIRC there is an oddity about being able to reclaim fuel VAT on mileage in a private vehicle but this does not apply for those of us on VAT FRS.

[WordIsBond]

Just to clarify. I've been told I can not expense any petrol used on business trips if using a personal car. So I can't claim the 45p per mile (for first 10,000 miles). Just read the above. I need to get back to the accountants and clarify. Maybe there was some mis-communication !

Understatement of the day (or year).

"Mileage" and "petrol" are not the same thing. You cannot claim the money you spend on petrol. Instead, you can claim 45p per mile, which is a lot more. Quit worrying about the petrol and claim the 45p and be happy.

[poster2034]

Mileage

Just to clarify. I've been told I can not expense any petrol used on business trips if using a personal car. So I can't claim the 45p per mile (for first 10,000 miles). Just read the above. I need to get back to the accountants and clarify. Maybe there was some mis-communication !

[Kenny@MyAccountantFriend]

Thanks for the Info.


The accountant didn't deny that I couldn't claim mileage for the business trips, i.e. driving there and back on Monday/Fridays and from hotel to work whilst there. BUT they were adamant that any Petrol Mileage could ONLY be expensed if it was a company car ?!?!? Is that really true. If I drive in a personal car, then I can not expense any petrol, according to the accountant

The issue seems to be regarding claiming petrol costs as these can only be claimed for a company car (if applying a fuel benefit), instead you should be claiming mileage at 45p per mile for the first 10,000 miles each year and then 25p per mile if you exceed 10,000 miles.

[WTFH]

The accountant didn't deny that I couldn't claim mileage for the business trips, i.e. driving there and back on Monday/Fridays and from hotel to work whilst there. BUT they were adamant that any Petrol Mileage could ONLY be expensed if it was a company car ?!?!? Is that really true. If I drive in a personal car, then I can not expense any petrol, according to the accountant

You say you can claim mileage, but you can't claim "petrol mileage". Sorry, can you explain what you mean as "petrol mileage" compared with "mileage"?

[northernladuk]

Drop them an email and ask them to explain the reasoning very clearly with links to references for clarity. You shouldn't accept an answer until you are 100% confident you understand and agree. There could be something he knows that we don't although that doesn't seem likely in this instance.