10,000 miles at 40p... how many times?

Monsoon

A person is employed and does 9000 business miles for which they are reimbursed at 40p

The same person is also self employed and does 8000 business miles for which they want to claim 40p.

Now, logic says that the taxman isn't nice enough to allow all of these miles through at 40p, and 7000 of the s/emp miles should be put through at 25p. HOWEVER...! I am sure I read somewhere recently that it's per employment (because if you have 3 employments each doing 9k miles, no employer is going to be able to split that or get the P11D correctly and, even if its supposed to happen, I can't see said employee declaring the excess). If its 10k per employment, logic then says is can be a separate 10k for s/emp - can it?

Can anyone point me in the right direction? Tolleys sadly doesn't go into enough detail on this one.

This isn't one thats likely to crop up that often and it's a bit of a head scratcher, it's either a yes or no, but I can't find which....!

JodieR

I potentially had that problem once but luckily mine came in at under 10000 combined so I'm afraid I never found out the answer!

snowmarauder

i know its something to do with the rate @ 45p, its the rate they recommend. then the company have to deallwith it, before that the tax office can, be they aint to pleased about it as they expect the firm to pay the reccomended.

Vonni

So far as I know the 40p per mile is restricted to 10,000 miles in any tax year and if you are making the claim to your employer it is up to you to ensure that it is claimed at the correct rate.

If you are also self employed, as I am, only you will know when the 10k threshold has been reached so your claim for self employed purposes should be reduced to the 25p per mile rate.

If the Revenue raised an enquiry you could find that this is an area that they may look at - if they found an anomaly they could go back 6 closed tax years!

Y

Anne Boleyn

Mileage

This was also asked recently on accountingweb and the answer was that the HMRC states that the 10,000 is per employment not per person therefore it would be OK to claim for more than 10,000 at 40p/mile. Unfortunately I can't find the post and haven't as yet looked at HMRC site to support this.

Edit: This is the accountingweb question and answer
http://www.accountingweb.co.uk/anyanswers/employed-self-employed-two-mileage-claims

Monsoon

Anne Boleyn wrote: »

This was also asked recently on accountingweb and the answer was that the HMRC states that the 10,000 is per employment not per person therefore it would be OK to claim for more than 10,000 at 40p/mile. Unfortunately I can't find the post and haven't as yet looked at HMRC site to support this.

Edit: This is the accountingweb question and answer
http://www.accountingweb.co.uk/anyanswers/employed-self-employed-two-mileage-claims

Thanks Anne, this was what I'd read and was just what I was looking for!

The HMRC guidance is here
http://www.hmrc.gov.uk/manuals/senew/SE31385.htm

If the two (or more) employments are not connected, then it is 10k per employment.

(Also, Anne have a gold star for finding something on AWeb, I can't normally work their search function )