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Mileage query

sjkrsjkr Feels At HomeMAAT, AAT Licensed Accountant Posts: 74
Hello,

I have a client who is employed, and has a company car. My client is also self-employed, selling skincare products. She uses the company car for her self employed work, and pays for the fuel herself.

My question is, can she claim the usual 45p mileage allowance because she pays for the fuel for her self employed mileage, or can she not, as the car is actually a company car and not her own?

Julie

Comments

  • burgburg Experienced Mentor GloucesterModerator, FMAAT, AAT Licensed Accountant Posts: 1,441
    The problem may be that the mileage rates are there to account for not just fuel but also wear and tear etc. You could argue that these costs are being incurred but similarly they are not being incurred by your client. I may be tempted to use the approved fuel rates for company cars which will remove the wear and tear element.
    Regards,

    Burg
  • stevo5678stevo5678 Well-Known Cheltenham Registered Posts: 325
    That's a strange one. I don't quite see how she can claim more than the Fuel adv rates so agree with Ian. I would imagine her employer would have something to say about how she uses the car!
  • CaroleCarole Feels At Home Registered Posts: 56
    I have a company car and I used to also be a part time MIP. My employer has strict rules about the use of company cars because of insurances. They can only be used for company business or social and domestic, employee and spouse only. I agree that if it is allowable to use the car for the clients own business then HMRC advisory fuel rates should apply. In my case I used to swap cars with my husband when I visited clients and claim the 45p per mile. It seemed the obvious solution.
  • JawzJawz New Member West MidlandsRegistered Posts: 53
    Carole wrote: »
    I have a company car and I used to also be a part time MIP. My employer has strict rules about the use of company cars because of insurances. They can only be used for company business or social and domestic, employee and spouse only. I agree that if it is allowable to use the car for the clients own business then HMRC advisory fuel rates should apply. In my case I used to swap cars with my husband when I visited clients and claim the 45p per mile. It seemed the obvious solution.


    Hi Carole, Just to clarify-For your MIP business mileage, you swapped to your husband's car and claim the mileage allowance for your MIP business trips instead of using your own company car?
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