45p per mile

[Jessica@WhiteFieldTax]

Passenger miles

Just a reminder you can also claim 5p per mile per passanger for each extra passanger on the journer, but only if your employer pays it to you - wheras basic mileage can be claimed even if not employer reimbursed.

[backrubber]

45p per mile

You are correct but when you get to 10 000 miles in the tax you can then claim 25p per mile over that limit and still incur no BIK and can offset against CT.

Thanks for the confirmation JamJarST.

[Nixon Williams]

The £630 will be tax free for me ie I won't need to declare it on my self assessment tax return. My company will be able to offset the £630 against corporation tax at the end of the year, meaning a saving of 21% x £630 = £132.30.

The corporation tax rate is now 20%.

[JamJarST]

I'm just in the process of moving to a new work location. I am employed by my own limited company. I cannot charge the client for travel.

My question:

Am I correct in saying that my company can pay me 45p per mile for the first 10,000 miles incurred during the current financial year? My daily round trip will be 70 miles, therefore my company will owe me £31.5 per day. At the end of each month, my company will then pay me the total for the month, say, 20 days x £31.50 = £630.

The £630 will be tax free for me ie I won't need to declare it on my self assessment tax return. My company will be able to offset the £630 against corporation tax at the end of the year, meaning a saving of 21% x £630 = £132.30.

This can exist within the 24 month rule.

Have I got all this right?

Thanks, Backrubber

You are correct but when you get to 10 000 miles in the tax you can then claim 25p per mile over that limit and still incur no BIK and can offset against CT.

[backrubber]

45p per mile

I'm just in the process of moving to a new work location. I am employed by my own limited company. I cannot charge the client for travel.

My question:

Am I correct in saying that my company can pay me 45p per mile for the first 10,000 miles incurred during the current financial year? My daily round trip will be 70 miles, therefore my company will owe me £31.5 per day. At the end of each month, my company will then pay me the total for the month, say, 20 days x £31.50 = £630.

The £630 will be tax free for me ie I won't need to declare it on my self assessment tax return. My company will be able to offset the £630 against corporation tax at the end of the year, meaning a saving of 21% x £630 = £132.30.

This can exist within the 24 month rule.

Have I got all this right?

Thanks, Backrubber

[PhilipTory]

How much do you charge your clients?

I run my own one-man Technical Writing business, and I currently charge my clients 55p/mile for trips to site (plus any local mileage to hotel etc). I can't claim it all against tax, but that's another issue.

I wonder what other contractors are charging? I'd be interested to see.

Philip Tory


Mod note: Welcome Phillip, please read the T&Cs of this forum regarding advertising. Thanks.

[prozak]

sweet... wasn't sure if this was just rumour...

I always hit the 10k limit and my costs have gone up a bit... although only up to 11p a mile for diesel (+other costs)

[TheFaQQer]

I would charge the client what I could get away with

45p a mile is what you can claim from your employer - it doesn't need to match what the client gets charged. For example, in one permie job, I got 12p a mile (and a company car). Clients were charged 60p a mile, and this was 11years ago, so I don't expect that they are being charged any less than that these days.

[SueEllen]

Useful info here -budget 2011f (warning pdf)

[Billy Pilgrim]

With the alllowable/acceptable mileage rate going up in April are those who charge their customers for travel increasing the rate to 45p or keeping it at the current rate ??