Mileage claims over multiple companies

[firework]

Hello
My wife an I are directors of 4 companies, we use our private vehicles carrying out work for these companies.

I am seeking clarification regarding the 10,000 miles that can be claimed at 45p per mile.

Is this:
Per director - so 10,000 for each director divided between the companies?
or
Each individual director for each company? So in our case both my wife and I could claim 10,000 miles at 45p for each of the 4 companies (this will not happen but theoretically speaking).
or
Per vehicle so if we shared a car - then 10,000 miles at 45p in total, if we had 3 cars and used them all from time to time then 30,000 at 45p?

I should point out that the companies are entirely separate and not linked.

Sorry if in the pursuit of clarity I am making things complicated.

Thanks

 

[UK Contractor Accountant]

if the employee has more than one employment that's "associated". The 10,000 limit applies to the employee across those associated employments. If the employments aren't associated then there's a 10,000 limit for each employment.

An associated employment is defined in S230(4) as broadly being where: It's with the same employer.It's with employers who are under the same control.

 

[firework]

Thank you

" It's with the same employer.It's with employers who are under the same control."

Would this include two directors being directors of all 4 companies?

 

[UK Contractor Accountant]

Would this include two directors being directors of all 4 companies?

yes

 

[STDFR33]

Legislation reference...



ITEPA 2003, s230 (4)

(4)One employment is associated with another if—

(a)the employer is the same;

(b)the employers are partnerships or bodies and an individual or another partnership or body has control over both of them; or

(c)the employers are associated companies within the meaning of section 416 of ICTA.


ICTA 1988, s416

Meaning of “associated company” and “control”

(1)For the purposes of this Part, except paragraphs 2 and 9(1)(a), (2)(a) and (3)(a) of Schedule 19, a company is to be treated as another’s “associated company” at a given time if, at that time or at any other time within one year previously, one of the two has control of the other, or both are under the control of the same person or persons.

(2)For the purposes of this Part, a person shall be taken to have control of a company if he exercises, or is able to exercise or is entitled to acquire, direct or indirect control over the company’s affairs, and in particular, but without prejudice to the generality of the preceding words, if he possesses or is entitled to acquire—

(a)the greater part of the share capital or issued share capital of the company or of the voting power in the company; or

(b)such part of the issued share capital of the company as would, if the whole of the income of the company were in fact distributed among the participators (without regard to any rights which he or any other person has as a loan creditor), entitle him to receive the greater part of the amount so distributed; or

(c)such rights as would, in the event of the winding-up of the company or in any other circumstances, entitle him to receive the greater part of the assets of the company which would then be available for distribution among the participators.

(3)Where two or more persons together satisfy any of the conditions of subsection (2) above, they shall be taken to have control of the company.

(4)For the purposes of subsection (2) above a person shall be treated as entitled to acquire anything which he is entitled to acquire at a future date, or will at a future date be entitled to acquire.

(5)For the purposes of subsections (2) and (3) above, there shall be attributed to any person any rights or powers of a nominee for him, that is to say, any rights or powers which another person possesses on his behalf or may be required to exercise on his direction or behalf.

(6)For the purposes of subsections (2) and (3) above, there may also be attributed to any person all the rights and powers of any company of which he has, or he and associates of his have, control or any two or more such companies, or of any associate of his or of any two or more associates of his, including those attributed to a company or associate under subsection (5) above, but not those attributed to an associate under this subsection; and such attributions shall be made under this subsection as will result in the company being treated as under the control of five or fewer participators if it can be so treated.

 

[UK Contractor Accountant]

I think that still means 'yes'

But who knows these days- never thought Trump would win but there you go!

 

[STDFR33]

I think that still means 'yes'

But who knows these days- never thought Trump would win but there you go!

It does indeed, but my self esteem was low at the time of posting, so I wanted to try and sound intelligent.

 

[firework]

Thank you for the replies -
Am I correct in summarising -
2 directors can each claim 10,000 miles at 45p - then 25p thereafter.

What if they both do separate trips individual in a shared private vehicle? Is it the vehicle that is allocated the miles or the director? If directors then 1 vehicle gets 20,000 miles at 45p.

But if one director has access to multiple private vehicles and each vehicle can accrue 10,000 miles at 45p, one director could shift to another vehicle when they had used 10,000 on one.

 

[STDFR33]

Thank you for the replies -
Am I correct in summarising -
2 directors can each claim 10,000 miles at 45p - then 25p thereafter.

What if they both do separate trips individual in a shared private vehicle? Is it the vehicle that is allocated the miles or the director? If directors then 1 vehicle gets 20,000 miles at 45p.

But if one director has access to multiple private vehicles and each vehicle can accrue 10,000 miles at 45p, one director could shift to another vehicle when they had used 10,000 on one.

Director.

As long as the vehicle is not a company car, then mileage can be claimed regardless of who the car belongs to.

 

[UK Contractor Accountant]

what he said↑