Business Mileage
ademoore
Registered Posts: 144 Dedicated contributor 🦉
A client's records has just thrown me with regards to business mileage!
They calculated correctly business mileage up to 10,000 miles at 40p (last years rate) and then 25p thereafter - yet from 5th April 2011, they were calculating at the new 45p - starting the 10,000 off once again!
Wouldnt the 25p rate continue for the remainder of their financial year period - rather than start counting again at the start of the new tax year (6th April)?
Hope that makes sense!!!
They calculated correctly business mileage up to 10,000 miles at 40p (last years rate) and then 25p thereafter - yet from 5th April 2011, they were calculating at the new 45p - starting the 10,000 off once again!
Wouldnt the 25p rate continue for the remainder of their financial year period - rather than start counting again at the start of the new tax year (6th April)?
Hope that makes sense!!!
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Comments
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Yes it makes sense.
The 10k limit is per tax year and not the employers financial year so this is correct. All I would say is that technically it is 6th April not 5th but I think you'll find HMRC is not that pedantic.
Payrollpro0
