Reply to: Mileage Claims

[benben5555]

No real difference to a standard policy

[tarbera]

Just wondering - how much does your business car insurance cost per year for this ?

[benben5555]

Sorry to bang on but I'm still not sure about one point. That being - is my company charging the ClientCo for mileage completely separate from my personal claim against my company for using my car?

I.e. I can claim from my company for mileage in line with HMRC rates for every mile I do (not commuting). If my company decide to charge the ClientCo for the same miles then they can at any rate they choose (because this isn't a disbursement but just part of the fee I have decided to charge).

[TheFaQQer]

And my personal claim against my company could only ever be 45p a mile for 10,000 and 25p after that.

You can claim what you want from your company, so if you wanted to pay £100 a mile for ever you could do.

However, payments over the HMRC approved thresholds (which is what you have quoted) is a benefit in kind.

[DaveB]

Thanks for all the replies so far. The only thing I need to clarify then is that what my company charges the ClientCo for mileage is completely separate from my personal milage claims against my company. i.e. my company could charge the ClientCo 45p a mile for 500,000 miles a year if it wanted? And my personal claim against my company could only ever be 45p a mile for 10,000 and 25p after that. The two are completely separate?

If that's what's in the contract then that's what you can charge. I doubt it will be. Client Co. will tell you what they will pay in mileage in the contract schedule and that's what you will include on the invoices.

[psychocandy]

Ignoring all the obvious complications with this being contract, I think the situation the OP has described is all down to the agreement with the client.

In permie world, its not unknown for the employer to have a similar agreement. The NHS in wales certainly do (for whom my dear wife works).

If its 10 miles from to base then they automatically knock that off the days expenses claim (plus the 10 miles home). So if you go from home to patient A - 5 miles, somewhere else 15 miles, back to base -10 miles, then home 10 miles, total is 40 miles for the day but you'd get paid 20 miles.

[benben5555]

Thanks for all the replies so far. The only thing I need to clarify then is that what my company charges the ClientCo for mileage is completely separate from my personal milage claims against my company. i.e. my company could charge the ClientCo 45p a mile for 500,000 miles a year if it wanted? And my personal claim against my company could only ever be 45p a mile for 10,000 and 25p after that. The two are completely separate?

[Gumbo Robot]

Did your accountant tell you that?

What you personally claim from YourCo and what YourCo charges the client are two separate things. The former is 45p per mile (not plus VAT) and includes everything including going to their normal site; the latter is whatever you agree with them, could be a £1,000 per mile or could be zero (but is +VAT). Even if they pay YourCo £1000 per mile you still only pay yourself 45p per mile otherwise it'll be counted as income and taxed.

A bit brave to ask this in General.

Yes I know. And I expect the client to reimburse the going rate ie £0.45 per mile. Or more if I should be so lucky

[Support Monkey]

I would expect anyone with an IQ greater than a half wit 7 year old to be able to understand.

Judging by your grasp of basic punctuation, as evidenced by the quote above, I suspect you didn't.

I never got a college edumucation like wot some people did

[TheFaQQer]

If your drive is commuting you put it through your Ltd as an expense.

If your drive is commuting and you do this, you need to declare it as a benefit in kind - normal commuting isn't an allowable expense.

[Dactylion]

Well that's cleared that up then, It almost seems to easy

I would expect anyone with an IQ greater than a half wit 7 year old to be able to understand.

Judging by your grasp of basic punctuation, as evidenced by the quote above, I suspect you didn't.

[Support Monkey]

Ignore most of the replies so far :-) They are either flippant because you have posted in general or just plain wrong.

There is a big difference between what your company can get from the Client Co in terms of these costs.
it would on the face of it seem like they are happy for YourCo to charge them for any additional mileage you need to do that is over and above what you would normally do to get to normal ClientCo site.
So in your example if you travel 35 mile from your home to Site 2 and normally travel 40 miles to Site 1 they wouldn't expect to pay extra
But there are all sorts of variants that might come in to play here:
a) If you travelled to Site 1 in the morning and then
b) Had to travel to site 2 during the day - They might be perfectly happy to pay YoutCo for 75 miles
c) If you then, during the same day returned to Site 1 they might even be happy to pay YourCo for those 75 miles
d) BUT if you went straight home they might not expect to pay YourCo for the 35miles....

ClientCo will have a rate per mile that they will pay... which may or may not be 45p p/m

There is another can of worms about how YourCo gets it's hands on the money
a) Does it Invoice for the mileage - AND include addition VAT...
b) Do you (on YourCo behalf) enter it into some form of expenses application (and almost certainly NOT include VAT!!!)

But entirely independently of any of the above, and irrespective of if ClientCo ever pay YourCo for any mileage.
You (as a person) can claim your own mileage from YourCo* including the 40 mile to ClientCo site 1, the 70 miles to site 2, back to Site 1 or back to home or whatever.
a) at 45p p/m (upto 10000miles) - without any issues with BIK or tax etc

* Assuming that your normal place of work is your registered office/your house
as you CANNOT legitimately claim for commuting (travel to your normal place of work)

Edit: Some replies written while I was writing are more accurate and helpful than indicated above

Well that's cleared that up then, It almost seems to easy

[Pondlife]

All of the above assume you're not using a brolly or caught by IR35 past April 6th.

[Dactylion]

Ignore most of the replies so far :-) They are either flippant because you have posted in general or just plain wrong.

There is a big difference between what your company can get from the Client Co in terms of these costs.
it would on the face of it seem like they are happy for YourCo to charge them for any additional mileage you need to do that is over and above what you would normally do to get to normal ClientCo site.
So in your example if you travel 35 mile from your home to Site 2 and normally travel 40 miles to Site 1 they wouldn't expect to pay extra
But there are all sorts of variants that might come in to play here:
a) If you travelled to Site 1 in the morning and then
b) Had to travel to site 2 during the day - They might be perfectly happy to pay YoutCo for 75 miles
c) If you then, during the same day returned to Site 1 they might even be happy to pay YourCo for those 75 miles
d) BUT if you went straight home they might not expect to pay YourCo for the 35miles....

ClientCo will have a rate per mile that they will pay... which may or may not be 45p p/m

There is another can of worms about how YourCo gets it's hands on the money
a) Does it Invoice for the mileage - AND include addition VAT...
b) Do you (on YourCo behalf) enter it into some form of expenses application (and almost certainly NOT include VAT!!!)

But entirely independently of any of the above, and irrespective of if ClientCo ever pay YourCo for any mileage.
You (as a person) can claim your own mileage from YourCo* including the 40 mile to ClientCo site 1, the 70 miles to site 2, back to Site 1 or back to home or whatever.
a) at 45p p/m (upto 10000miles) - without any issues with BIK or tax etc

* Assuming that your normal place of work is your registered office/your house
as you CANNOT legitimately claim for commuting (travel to your normal place of work)

Edit: Some replies written while I was writing are more accurate and helpful than indicated above

[Support Monkey]

If your drive is commuting you put it through your Ltd as an expense.

If your drive is for the client you put the cost on your invoice to them.

so in your situation whichever client site you go to the first 40 miles will go through your Ltd as an expense for commuting anything above the 40 miles will go to the client on your invoice

If you do 35 its only commuting if you then leave that site and go to another client site you bill the client as your no longer commuting