Motor Expenses

[batman]

Hi there,

I have my own ltd company and was wondering how is best to recoup the expenses I have spent on my car.

I understand I could claim a fixed mile claim at 40p a mile.

The problem is I have spent about over £1k on repairs on the car and was wondering if any chance I could claim them back? The car is privately owned, howver 85% of mileage is business related.

Cheers in advance

[Crowy2004]

How much business mileage do you make? As you are entitled to claim the first 10,000 miles is at 40p and after that it is 25p.

[David Griffiths]

It's a privately owned car, so you are llimited to the 40/25p per mile

[benjamin_c]

couldn't you just add some extra miles onto the expense claim to cover the cost of repairs? i know that this may be against regulations but in reality who's going to know?

[Zeno]

couldn't you just add some extra miles onto the expense claim to cover the cost of repairs? i know that this may be against regulations but in reality who's going to know?

Why not make up a few expenses while you are at it? In fact, if you make up some employees then you will probably pay no tax at all. After all, who's to know?

[David Griffiths]

couldn't you just add some extra miles onto the expense claim to cover the cost of repairs? i know that this may be against regulations but in reality who's going to know?

That's right. Popping down to the bank, 2500 miles. Nobody will notice. :rolleyes:

The 40p per mile already includes an allowance for repairs and depreciation. I've never heard of anybody saying that they didn't have any repairs done so perhaps they should claim a bit less. And it's amazing how the repair bill is ALL down to business use.

It generally averages out over the year.

Oh, and it's not against regulations. It's fraud. Why not use the correct word?

[benjamin_c]

well obviously if 2500 miles suddenly appeared then it would be questioned but surely another hundred or so could be put on each month, and depending on the car the depreciation and fuel usage could be more then the allowance, not to mention the insurance. if its for his own company which i'm asuming it is then surely it's upto him? if he is an employee then i can see that it would be wrong to do this.

[Mayfield Electrical]

If the company is VAT registered, the company can also claim the vat back on any expenses and fuel used, any other amounts are recouped through the 40/25p per mile.

[David Griffiths]

well obviously if 2500 miles suddenly appeared then it would be questioned but surely another hundred or so could be put on each month, and depending on the car the depreciation and fuel usage could be more then the allowance, not to mention the insurance. if its for his own company which i'm asuming it is then surely it's upto him? if he is an employee then i can see that it would be wrong to do this.

Doesn't matter how you disguise it. Fraud.

Oh, and if the allowance is more than his costs, do you advocate reducing the mileage claims by 100 miles here and there? Thought not.

[Mayfield Electrical]

well obviously if 2500 miles suddenly appeared then it would be questioned but surely another hundred or so could be put on each month, and depending on the car the depreciation and fuel usage could be more then the allowance, not to mention the insurance. if its for his own company which i'm asuming it is then surely it's upto him? if he is an employee then i can see that it would be wrong to do this.

You are supposed to keep records of any business milage, just incase you have an investigation.

As it's a limited company, the op is an employee. Sorry if this sounds sarcastic.

The milage allowance has been the same for years even though the price and repairs has risen steeply :mad:

[benjamin_c]

it's ironic that those whom decide upon the rules and regs regarding this kind of thing are the ones using tax payers money to fund second homes and water fountains. if you follow every letter of the law then yes it is fraud. but how many people in business would do it? i'm guessing most would, does that make it right? no. but people still do it. there are some terrible things going on in the world, somone claiming a few extra miles here and there isnt one of them.

[benjamin_c]

You are supposed to keep records of any business milage, just incase you have an investigation.

As it's a limited company, the op is an employee. Sorry if this sounds sarcastic.

The milage allowance has been the same for years even though the price and repairs has risen steeply :mad:

and the price of fuel, i filled up today and it was 0.1p off being £1.13 a litre!!! and the 40ppm still applied when it was 82.9ppl.

[Zeno]

it's ironic that those whom decide upon the rules and regs regarding this kind of thing are the ones using tax payers money to fund second homes and water fountains. if you follow every letter of the law then yes it is fraud. but how many people in business would do it? i'm guessing most would, does that make it right? no. but people still do it. there are some terrible things going on in the world, somone claiming a few extra miles here and there isnt one of them.

Two wrongs don't make a right.

[Mayfield Electrical]

Benjamin, in 1 respect your completely right MP's have been found guilty of fraud due to expense clains yet not only do they escape being penalised but also get to keep their jobs.:eek:

If you or I were to do the same then that would be a different matter :|. But 2 wrongs don't make a right and at the same time there shouldn't be 2 different rules. It would however be interesting if someone was now taken to court over false expenses claims:D

[David Griffiths]

We don't know what benjamin c does, but I wonder what he would say if for example one of his customers decided that a product was cheaper in Tesco, so helped himself to a few extra, just to make up the difference.

Or if one of his employees (assuming he has any) thought that his pay rate was lower than the average, and hadn't kept pace with inflation, so he took a few hundred pounds worth of stock to make up the difference.

Seems to me that would be alright by his reasoning

[Mayfield Electrical]

and the price of fuel, i filled up today and it was 0.1p off being £1.13 a litre!!! and the 40ppm still applied when it was 82.9ppl.

Sorry Benjimin it did mean to read 'price of fuel and repairs':redface:

[benjamin_c]

We don't know what benjamin c does, but I wonder what he would say if for example one of his customers decided that a product was cheaper in Tesco, so helped himself to a few extra, just to make up the difference.

Or if one of his employees (assuming he has any) thought that his pay rate was lower than the average, and hadn't kept pace with inflation, so he took a few hundred pounds worth of stock to make up the difference.

Seems to me that would be alright by his reasoning

i am sorry if i have annoyed or offended you in any way. all i did was expressed my opinion. from your sig i gather you're an accountant so have professional knowledge on these kind of matters and seem to have very strong opinions on doing the "right thing" which i respect and admire to a point. and in no way am i advocating tax fraud. i am just giving an opinion. and a few extra miles is not comparable to theft from a supermarket. i am sure that 99% of business owners whom use their own cars for company travel would add a few extra, just as i know people who take their spouses out for a nice meal and class it as "entertainment"
it may not be the "right" thing to do but its far from being the crime of the centuary. and considering the example our own government sets who could blame anyone for it?
in reality what are the chances of somone getting caught for a few extra miles? i'm going to assume its very low/non existant, but i stand to be corrected :)

[elainec100@cheapaccounting]

Two wrongs don't make a right.

I bet your father used to say that :rolleyes::p

[elainec100@cheapaccounting]

i am sorry if i have annoyed or offended you in any way. all i did was expressed my opinion. from your sig i gather you're an accountant so have professional knowledge on these kind of matters and seem to have very strong opinions on doing the "right thing" which i respect and admire to a point. and in no way am i advocating tax fraud. i am just giving an opinion. and a few extra miles is not comparable to theft from a supermarket. i am sure that 99% of business owners whom use their own cars for company travel would add a few extra, just as i know people who take their spouses out for a nice meal and class it as "entertainment"
it may not be the "right" thing to do but its far from being the crime of the centuary. and considering the example our own government sets who could blame anyone for it?
in reality what are the chances of somone getting caught for a few extra miles? i'm going to assume its very low/non existant, but i stand to be corrected :)

confused????

you are advocating tax fraud :|:|:cool:

Whether it is morally right or wrong and whatever persoanl views we have on MPs expenses - recording non existent expenses is illegal.

[Zeno]

I bet your father used to say that :rolleyes::p

That was a wee bit below the belt... but your right.

[elainec100@cheapaccounting]

That was a wee bit below the belt... but your right.

As we say in this neck of the woods - cruel but fair :p