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 ?

ROCK

Hi

Yes you can as you can claim the first 10,000 miles per TAX year at 40p/mile

Just make sure your client hasn't claimed any other mileage in the 09/10 tax year from a previous employment etc

Paul

Bluewednesday

The company can offset the mileage at the cost they paid the director. It's dealt with via the Directors tax return for too much or too little payment, it makes no difference to the company's tax calc.