Mileage Allowance

BIG WAL

I have a small company client where the director, using his own car, has done over 13,000 miles in the accounting year (Nov 2009 to Oct 2010).

Up to 5th April 2010 mileage totalled 7,300 miles, then a further 5,800 between then and the financial year end.

Can the company offset the total mileage 13,100 at the full 40p a mile against profits, despite the fact that it's in excess of the 10,000 miles for that accounting year ?

deanshepherd

The company can offset whatever it paid the director for the mileage during the year.