Mileage

[Wilma]

Hi Everyone,

I wonder if anyone could clarify for me about mileage. If a self employed individual is sometimes given a van to use by the company for his daily business, but other times the van is not available and he uses is own private car. Can he claim 40 pence in the mile whilst using his car for business use only?

He has been told that he can't, but I think maybe he can maybe I am wrong, any help would be appreciated.

Wilma

 

[MyAccountantOnline]

Hi Everyone,

I wonder if anyone could clarify for me about mileage. If a self employed individual is sometimes given a van to use by the company for his daily business, but other times the van is not available and he uses is own private car. Can he claim 40 pence in the mile whilst using his car for business use only?

He has been told that he can't, but I think maybe he can maybe I am wrong, any help would be appreciated.

Wilma

It depends on his turnover if it's below the VAT threshold yes he can claim 40p per mile for business trips in his car for the first 10,000 miles pa then 25p per mile thereafter.

 

[Wilma]

Thanks Nicola for your answer. I did think myself that he could, but he was told by an accountant that he couldn't, so was double checking.

Thanks again

 

[MyAccountantOnline]

Thanks Nicola for your answer. I did think myself that he could, but he was told by an accountant that he couldn't, so was double checking.

Thanks again

The accountant may have some details which we dont have so if in doubt you'd be best to refer back to the accountant and ask him to clarify the reason.

 

[Bob]

Hi Everyone,

I wonder if anyone could clarify for me about mileage. If a self employed individual is sometimes given a van to use by the company for his daily business, but other times the van is not available and he uses is own private car. Can he claim 40 pence in the mile whilst using his car for business use only?

He has been told that he can't, but I think maybe he can maybe I am wrong, any help would be appreciated.

Wilma

If he is supplied occasionally with a company van, are you happy that he is actually self-employed and not an employee :|

 

[MrPAYE]

If he is supplied occasionally with a company van, are you happy that he is actually self-employed and not an employee :|

My thoughts exactly.

The OP refers to "the company" in her original post. Does this mean that the individual works for the same company all the time ? If he does, AND he is being supplied with something as significant as a van to do the work, alarm bells should be ringing loud and clear.

 

[David Griffiths]

My thoughts exactly.

The OP refers to "the company" in her original post. Does this mean that the individual works for the same company all the time ? If he does, AND he is being supplied with something as significant as a van to do the work, alarm bells should be ringing loud and clear.

Quite possibly, but it's not the "employee/contractor's" problem, is it? It's up to the "employer" to decide on status and the "employer" carries all of the risk

 

[MrPAYE]

Quite possibly, but it's not the "employee/contractor's" problem, is it? It's up to the "employer" to decide on status and the "employer" carries all of the risk

Agree that it is the concern of the 'employer'. However, it is all relevant to the original post. We could be talking about different things depending on the status - car mileage reclaim for a self employed person in his tax comp with no issues on the van or potential company van BIK if employee. There may also be differences in what is allowable as a business journey between the two scenarios. Again any errors in unpaid tax/NI will be the ultimate responsibility of the 'employer' but the individual will also be affected hence the comments flagged.