Mileage allowance

Dottie

If someone is a director and a sole trader and are claiming mileage allowance for both businesses are they restricted to 10,000 miles at 40p (old rates) and 25p thereafter, or allowed 2 x 10,000 mile?

My client has used 40p for both businesses.

Many thanks

Dottie

JodieR

I can't find HMRC's link for you but I'm pretty sure you get the full allowance for each business. I looked it up about a month ago and I found it then but it's vanished again!

PGM

JodieR wrote: »

I can't find HMRC's link for you but I'm pretty sure you get the full allowance for each business. I looked it up about a month ago and I found it then but it's vanished again!

I'm surprised if its for that for each business. Because you'd be able to get 20k miles at 45p, so in effect you'd be over recovering on insurance, road tax..

Monsoon

JodieR wrote: »

I can't find HMRC's link for you but I'm pretty sure you get the full allowance for each business. I looked it up about a month ago and I found it then but it's vanished again!

I am pretty sure that's right too - I looked it up a while back.
Someone who has an employment, and a self employment, gets the 10k on each.
I know it's 10k per employment - I'm pretty sure I couldn't find a specific on emp/s-emp and made a judgement call that if you are allowed 10k per employment (I did find that) then you should logically be allowed the same for e/se.

Monsoon

PGM wrote: »

I'm surprised if its for that for each business. Because you'd be able to get 20k miles at 45p, so in effect you'd be over recovering on insurance, road tax..

But not on fuel given today's prices ;-)

PGM

Monsoon wrote: »

But not on fuel given today's prices ;-)

Very true! And where I work they've kept the rate at 40p! Whether anyone with bother to get the extra 5p back as tax relief I don't know...

JodieR

http://www.hmrc.gov.uk/incometax/relief-mileage.htm

there you go, it's towards the end of the page. I, like monsoon, assumed for it to relate to self employments too (but my client in question actually came in just under the 10000 miles in total so I didn't have to take it further)

PGM

Usefull information to know, thanks.

Dottie

Thanks. I didn't think HMRC would be so generous. At least I don't have to go bank to the client and tell him he has overclaimed. Excellent!

Dottie