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Claiming Mileage

mc25mc25 Well-KnownRegistered Posts: 232
if an employee has a company car and get paid mileage at 12 per mile, the same employee is self employed, does anyone know are they allowed the claim the mileage allowance diff 40p-12p=0.28p so if say they did 1000miles work and got paid 1000*.12=120 can they claim the 1000*.28=280 plus whatever mileage they do for self employed work when completing the self assessment?

Thanks

Comments

  • payrollpropayrollpro Trusted Regular Hampshire/SurreyRegistered, Working Together with HMRC Posts: 418
    MC,

    I need a bit more information here. If they have a company car the maximum they can have as a mileage allowance is aorund the 12p but you cannot treat the same car as a personal one for the purposes of the 40p a mile elsewhere.

    Perhaps you could elaborate on the facts.

    Payrollpro
  • mc25mc25 Well-Known Registered Posts: 232
    thanks

    Payrollpro. To confirm this, the employee only uses the company car for work and get paid 12p per mile. He has got another car, which he uses on personal work, the question is, the mileage he has been paid at work @ 12p per mile can he claim the 28p diff when doing his self assessment to make it upto 40p mile?
    I hope that makes senses
  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    mc25 wrote: »
    if an employee has a company car and get paid mileage at 12 per mile, the same employee is self employed, does anyone know are they allowed the claim the mileage allowance diff 40p-12p=0.28p so if say they did 1000miles work and got paid 1000*.12=120 can they claim the 1000*.28=280 plus whatever mileage they do for self employed work when completing the self assessment?

    Thanks

    The employee can claim the balancing 28p for each employed mile driven against his employment income, as he is entitled to 40p; if he doesn't get it from the employer, he can claim it back against his salary, usually through a tax return.

    The miles he does as self employed are separate and he can claim motor expenses of 40p a mile.

    Note the cap on the 40p a mile is 10,000 miles a year, after that it goes to 25p a mile.

    The 10k mileage cap is per employment so if he did 9k employed and 9k self employed, all miles can be claimed at 40p.
  • payrollpropayrollpro Trusted Regular Hampshire/SurreyRegistered, Working Together with HMRC Posts: 418
    MC

    Thanks for that, I guessed thats what was going on. As far as the company car is concerned there is no additional allowance unless the advisory rates gives an indication of a higher payment than 12p a mile, however, even if this was the case there is no guarantee HMRC would accept a claim.

    With advisory rates there is no absolute right to a payment, unlike the AMAP's which are an absolute allowance and this is why taxpayers can offset a shortfall in payments against other income.

    The final answer is, therefore, no, he will not get the 28p as an allowance because it is a company car and there are only advisory rates applicable to them.

    As far as self employment is concerned, as long as this person is using their own personal vehicle they can charge clients what they like but can only charge costs against income and there are limits to that depending on the method used.

    Payrollpro
  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    Sorry, totally missed it was a company car... I defer to payrollpro on that one then as I don't deal with company cars at all! My example was if it was an employee-owned car. :)
  • mc25mc25 Well-Known Registered Posts: 232
    Thanks

    Payrollpro & Monsoon, thanks for your replies i did suspect the same thing but wanted to clarify it.
    Once again thanks
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