Mileage query

sjkr
sjkr Registered Posts: 74 Regular contributor ⭐
in General accounting discussion
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

  • burg
    burg Registered, Moderator Posts: 1,441 mod
    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
  • stevo5678
    stevo5678 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!
  • Carole
    Carole Registered Posts: 57 Regular contributor ⭐
    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.
  • Jawz
    Jawz Registered Posts: 53 Regular contributor ⭐
    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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