Originally posted by northernladuk
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Previously on "Tax relief on using own car for business purposes?"
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Originally posted by gatersUK View PostCan you enlarge on the meaning of same geographic area? My contract covers SW Eng and S Wales!
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Originally posted by northernladuk View PostDon't forget about the 24 month rule though... As soon as you know you are working in the same geographic area for 24 months you can no longer claim mileage.
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Originally posted by Maslins View PostAssuming by mileage you mean the 45p/mile, then that's all you can claim. Theory being the actual fuel cost is only maybe 15p (varies a lot depending upon mpg etc) so the "profit" on each mile contributes towards depreciation, insurance, servicing etc etc.
Ltd Co directors can't apportion costs like sole traders can. It's either a company car (whole new can of worms) or it's your private car and you reclaim mileage.
I'd suggest in the current year you reverse out the fuel costs you put through in year 1. Doesn't surprise me HMRC didn't spot it. It's self assessment, your responsibility to put in accurate figures. They'll look into some, especially where figures look odd, but only the whole they accept what you provide as factual. Them not questioning it doesn't mean they've agreed your figures are spot on, or that you shouldn't correct the mistake.
That makes sense, many thanks for the advice and direction. Forearmed is forewarned, at least I can go back and put him straight!!
Thanks again, much obliged to you sir....
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Don't forget about the 24 month rule though... As soon as you know you are working in the same geographic area for 24 months you can no longer claim mileage.
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Why would the company pay the servicing costs and depreciation of your personal car??? You claim the 45p per mile which covers all of these. Nothing else you can do. It is a personal car.
You could look in to your company buying it but you will get heavily stung for Benefit In Kind as it is available for personal use so just isn't worth it.
Use the search function as described in the link below and search for 'company car' or something like that. We have gone over company car benefits many times. In a nutshell claim your 45/25p and that is it else buy a company car in which case you are likely to be worse off unless it is super low on emissions. The links you will find will explain.
http://forums.contractoruk.com/welco...uk-forums.html
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Originally posted by gatersUK View PostHi there; can someone advise me on my circumstances? I'm a Ltd Company director; I'm claiming mileage/fuel through my expenses but haven't claimed any relief on using my own car. This is my second year trading and I am quite surprised HMRC didn't pick up on this after I submitted my first year accounts; if I am claiming mileage/fuel I'm wondering why they wouldn't have questioned what the fuel was going into?
I was discussing my company with an ex-colleague over the weekend and he seemed to think I should be claiming depreciation of my vehicle, cost of servicing, tyres etc?
I'm not too sure and my accountant is on holiday (again!!!)
Ltd Co directors can't apportion costs like sole traders can. It's either a company car (whole new can of worms) or it's your private car and you reclaim mileage.
I'd suggest in the current year you reverse out the fuel costs you put through in year 1. Doesn't surprise me HMRC didn't spot it. It's self assessment, your responsibility to put in accurate figures. They'll look into some, especially where figures look odd, but only the whole they accept what you provide as factual. Them not questioning it doesn't mean they've agreed your figures are spot on, or that you shouldn't correct the mistake.
Leave a comment:
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Tax relief on using own car for business purposes?
Hi there; can someone advise me on my circumstances? I'm a Ltd Company director; I'm claiming mileage/fuel through my expenses but haven't claimed any relief on using my own car. This is my second year trading and I am quite surprised HMRC didn't pick up on this after I submitted my first year accounts; if I am claiming mileage/fuel I'm wondering why they wouldn't have questioned what the fuel was going into?
I was discussing my company with an ex-colleague over the weekend and he seemed to think I should be claiming depreciation of my vehicle, cost of servicing, tyres etc?
I'm not too sure and my accountant is on holiday (again!!!)Tags: None
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