What can I claim as business Mileage

bains1010

Hi Guys

I currently have a company car and I am about to purchase the car from the company, run it myself and receive a car allowance instead.

We have offices approx 15 miles from my home which I visit once or twice a week, the majority of the time I am travelling to customers direct from my home and back again, some of these trips are 50+ miles each way.

What am I entitled to claim? I read on another thread that you cannot claim mileage to your work address as this is classed as commuting to and from work, but if I go straight to a customer site can I claim the full journey as it is all business mileage?

Look forward to your replies.

thank you.

Money_Grabber13579

As far as I'm aware, the journey from home to the customer is allowable because it's not your regular place of work. You'll be allowed 40p per mile for the 1st 10000 miles and 25p per mile thereafter in tax breaks.

bains1010

thanks for your quick response, I also understand that if my employer doesn't pay me 40p per mile and 25p after first 10,000 I can claim the difference by filling out a P87 at the end of the tax year?

sweetietot

You won't receive the difference from HMRC, only the tax paid on that amount,
for example 10,000 miles at 40p is £4000, if your employer paid you £2000 you could claim the tax back on the other £2000 so if you pay tax at 20%, you could receive £400 as a tax refund

slipp_digby

Money_Grabber13579 wrote: »

As far as I'm aware, the journey from home to the customer is allowable because it's not your regular place of work. You'll be allowed 40p per mile for the 1st 10000 miles and 25p per mile thereafter in tax breaks.

bit rusty on this - Money Grabber - what you said sounds correct but just playing devils advocate

If the office the OP visits (works from) is classed as their permanent place of work on thier contract, should the mileage not be calculated from their office to the customers site?

e.g. office is 50miles north of OPs home, visits client 50miles north of office

do they claim a round trip of 200miles when their place of work is only 100miles round trip????

their is a flip side in that a client 50miles south of OP is 200miles roudn trip from the office

reddevilled

I thought the rules were that you took the shorter distance - whether that be office to customer, or home to customer and claim that?

Money_Grabber13579

I'll get the textbook out again!

The following costs of travel between home and work are allowable:
a)travel and subsistence costs incurred by a "site based" employee when travelling between home and the site.
b)travel and subsistence costs incurred by an employee who has a normal place of work, when undertaking business journeys which start from home

Alan Melville, Taxation

Would this not apply here?

bains1010

so if i understand this right, my home to office is approx 15 miles, but my site visits could be 50 miles from home, so i would only be able to claim 35 miles each way as i have to subtract the mileage to the office even if i don't visit the office?

thanks

2latenow

I'm in a similar situation (private car, business miles I pay for without a fuel card), so for clarrification can I check this part:

sweetietot wrote: »

You won't receive the difference from HMRC, only the tax paid on that amount,
for example 10,000 miles at 40p is £4000, if your employer paid you £2000 you could claim the tax back on the other £2000 so if you pay tax at 20%, you could receive £400 as a tax refund

My employer will pay me 15p/mile, so for 100 miles, £15. This will be paid to me through the company expenses re-payment process.

Q:-- Normally expenses are NOT taxed as they match receipts and cover allowed catagories (hotel, rail fare whatever). Is this the same for mileage expense payments, even though the rate paid by the company is abitrary ? [ presumably intended to compensate for fuel cost + wear-&-tear per mile]
(I found some related advice on HMRC including rates but this was headed "Company cars" whereas in both mine & OPs case they are private vehicles being used).

This 40p business.. If I understand correctly, then if the employer pays 15 p / mile, then we can claim 40-15p=25p / mile. HMRC dont issue a refund, but that this amount off the taxable pay so for a 20% tax payer then "money back" is in the form of a deduction in the tax bill of 25p/mile * 20%...

Have I got this correct? (and remembering this rate falls >10k in a tax year)

thanks.

fengirl_2

1. Yes, the same applies to reimbursed work mileage as long as it does not exceed the 40p/25p limits.
2. If you claim your mileage retrospectively at the end of the tax year, then HMRC will issue a repayment. They may agree to put an estimate of the relief in the following years' code number once you have etsablished your claim.