mileage allowance conundrum

[SueEllen]

Do you have car insurance for business use?

This is really important. If you don't have it and someone damages your car at the client ca rpark or drives into the back of you leaving it then your insurance is void.

[northernladuk]

And all subject to the 24.month rule as well ofc.

[ContrataxLtd]

You would charge the 35p a mile on your invoice to the client.
Your personal claim to your ltd company can then be at 45p per mile which is the hmrc allowable rate.

The two transactions are treated seperately in this respect.

Remembering that the 45ppm is only for the first 10,000 miles each tax year, after this it drops down to 25ppm (assuming you are using a car of course).

VAT should also be charged to your client on the mileage you charge and a proportion of this paid to HMRC (assuming you are on the flat rate scheme).

Martin
Contratax Ltd

[TheCyclingProgrammer]

You can charge your company whatever you want, though, as long as you account for it properly and pay the right level of tax.

Likewise, you can invoice ClientCo whatever you want too (subject to their agreement of course).

[stek]

Do you have car insurance for business use?

[TheFaQQer]

I know the gov rate is 45ppm, is that the minimum?

No, 0p would be the minimum. 45p is the maximum allowed without incurring a benefit in kind (subject to the mileage thresholds).

You can charge your company whatever you want, though, as long as you account for it properly and pay the right level of tax.

[blueislander]

You would charge the 35p a mile on your invoice to the client.
Your personal claim to your ltd company can then be at 45p per mile which is the hmrc allowable rate.

The two transactions are treated seperately in this respect.

Great thanks!

[blueislander]

What would your accountant say?

Waiting on their response...

[Kenny@MyAccountantFriend]

You would charge the 35p a mile on your invoice to the client.
Your personal claim to your ltd company can then be at 45p per mile which is the hmrc allowable rate.

The two transactions are treated seperately in this respect.

[northernladuk]

What would your accountant say?

[blueislander]

So the consultancy I am working for is paying me 35ppm for my driving - my belief is they claim that from the end-client I am on-site with.

I know the gov rate is 45ppm, is that the minimum? (have never had to drive on a contract before).

If the 35ppm is paid to me by the consultancy, can I claim the additional 10ppm through my company up to 10000 miles?

Any help is appreciated!