Claiming mileage at 40p - quick question

[Spapro]

Hi,

had a company car when employed until starting own business in January 2010 (claimed fuel only for business mileage back from company at I think 15p per mile).

From January have been claiming business mileage incurred at 40p per mile, aware this drops to 25p after 10,000 miles. My Car since starting the business is all paid personally outside of our ltd co.

My query is around assuming the mileage claim is per tax year (rather than our financial year which will be January-December) so the mileage claim clock is reset to zero from April 6th 2010 ?

I have done nearly 10,000 business miles in total since January but only 7,000 since the start of the tax year - so am I correct in thinking I can claim a further 3,000 miles this current tax year at 40p before dropping down to the 25p rate ?

 

[David Griffiths]

Yes, it's reset on 6 April

The HMRC site refers to a maximum of 10k miles in a tax year

 

[Merchant UK]

Hi I found this which could help you http://www.emmerson-hill.co.uk/downloads/Claim_for_Mileage_Allowance_Relief.pdf

let us know

 

[Spapro]

Thanks guys, all sorted then

 

[robindunne]

Hi,

had a company car when employed until starting own business in January 2010 (claimed fuel only for business mileage back from company at I think 15p per mile).

quote]

Have you claimed the difference of 25p (40p-15p) as a deduction against tax on your self assessment when you were employed?

 

[Spapro]

Hi,

had a company car when employed until starting own business in January 2010 (claimed fuel only for business mileage back from company at I think 15p per mile).

quote]

Have you claimed the difference of 25p (40p-15p) as a deduction against tax on your self assessment when you were employed?

Hi Robin,
I haven't although I haven't completed my self assessment for 09/10 yet ?
This was a company car funded completely by my employer with me just putting in petrol then claiming back my business mileage @ 15p per mile. Is this deduction still relevant on this basis ?

If so how would that work in terms of showing it on my self assessment ? Lets say I had done 14,000 business miles (from April 09 to when I left employment in Jan 10) ?

 

[David Griffiths]

Hi,

had a company car when employed until starting own business in January 2010 (claimed fuel only for business mileage back from company at I think 15p per mile).

quote]

Have you claimed the difference of 25p (40p-15p) as a deduction against tax on your self assessment when you were employed?

How is that claimable for a company car?

 

[David Griffiths]

Is this deduction still relevant on this basis ?

As you suspect, it isn't claimable

 

[robindunne]

Hi Robin,
I haven't although I haven't completed my self assessment for 09/10 yet ?
This was a company car funded completely by my employer with me just putting in petrol then claiming back my business mileage @ 15p per mile. Is this deduction still relevant on this basis ?

If so how would that work in terms of showing it on my self assessment ? Lets say I had done 14,000 business miles (from April 09 to when I left employment in Jan 10) ?

I only ask as I recently had a client who was paid a car allowance - rather than a company car, and was paid a similar amount per mile. Due to the arrangement he could claim the difference back - resulting in quite a nice tax rebate.

As you received the car as a BIK company car, the 40p allowance is not appropriate so not claim will be allowable.

Worth a ty though.

 

[David Griffiths]

Worth a ty though.

Knowing that it's wrong?

 

[robindunne]

Knowing that it's wrong?

David,

My experience with clients is that they very often don't know what they're asking. It certaily was "worth a try" because their understanding of a "company car" may be quite different depending on the nature of the arrangement with the employer. If it did turn out to be a car allowance, then the rebate could have been significant.

In this case it wasn't, but it still merited the quesiton being asked.

 

[David Griffiths]

David,

My experience with clients is that they very often don't know what they're asking. It certaily was "worth a try" because their understanding of a "company car" may be quite different depending on the nature of the arrangement with the employer. If it did turn out to be a car allowance, then the rebate could have been significant.

In this case it wasn't, but it still merited the quesiton being asked.

Didn't it merit actually clarifying the position, or using the word "if" before giving an answer?