Mileage allowance from Inland Revenue

blokes2

Hi all,
just a thought i have been self employed for a long time now but have only just realised about the mileage allowance (40p per mile) for the travelling expenses set by the inland revenue, i did actually know it was there but thoght i was doing the right thing by just claiming the amount i actually put in the tank per business trip, i didnt realise that the generous mileage rate covers depreciation of the vehicle which is why its more than the basic cost of the journey.
maybe this is why i am now going through a hard time financially because i never claimed what i was entitled to. dose any expert out there think i could claim back on previous years mileage??

Gene_Hunt_2

Ask your local MP, I bet he knows.

BoGoF

So you didn't also claim Capital Allowances for the car?

You would be probably best posting this in the tax forum

neilmcl

"Generous mileage rate" - you gotta be kidding. The rate has been this for as long as I care to remember and has not risen despite the huge increase in motoring costs in recent years. Come on HMRC, about time for a review don't you think!

And to answer your question I don't think you will be able to back date a claim, but ask your accountant.

Also, bear in mind it's only 40p for the first 10,000 miles, 25p thereafter, per tax year.

Hammyman

blokes2 wrote: »

Hi all,
just a thought i have been self employed for a long time now but have only just realised about the mileage allowance (40p per mile) for the travelling expenses set by the inland revenue, i did actually know it was there but thoght i was doing the right thing by just claiming the amount i actually put in the tank per business trip, i didnt realise that the generous mileage rate covers depreciation of the vehicle which is why its more than the basic cost of the journey.
maybe this is why i am now going through a hard time financially because i never claimed what i was entitled to. dose any expert out there think i could claim back on previous years mileage??

Not a chance. Once you've submitted your tax return for the year, you can't add anything else retrospectively.

Just some more info required though:

When you bought the car, did you put it through the books? Do you claim insurance, MOT, Tax and repairs ( or a percentage based on personal use) through the books?

I ask this because if you do, you cannot claim mileage rates. You can only claim one or the other.

MrRedundant

neilmcl wrote: »

"Generous mileage rate" - you gotta be kidding. The rate has been this for as long as I care to remember and has not risen despite the huge increase in motoring costs in recent years. Come on HMRC, about time for a review don't you think!

And to answer your question I don't think you will be able to back date a claim, but ask your accountant.

Also, bear in mind it's only 40p for the first 10,000 miles, 25p thereafter, per tax year.

Its not ungenerous either. The fact is most people claiming it have a car anyway, pay the insurance anyway and other overheads therefore the added mileage on top barely comes near the reclaim level.

However its probably not best for the low users or high users as low users will find they dont reclaim enough to cover the added insurance and higher earners the high service costs etc.

I reckon most moderate users are quids in.

I don't come near 40p a mile for my business mileage costs.

As for the OP's question. You can log on and make an amendment through the online system for last year but probably limited to this timewise but im sure the online system will only let you amend the ones you can. You can claim further back in writing. That said they probably wont make it easy and you may find other errors are found so be very careful what you do.
If its large enough number of miles and costs it may be worth seeking accounting advice.

Of course if you have capitalised it or claimed for other costs such as insurance etc bear this in mind.

blokes2

thanks all.

Hammyman, i have claimed capital allowances for the previous years, i did not know you couldn't claim both. i guess what i will do this year is just claim the mileage allowance as my capital allowance is virtually run out with the car and i have done WELL over 10,ooo miles for business in the car

MrRedundant

blokes2 wrote: »

thanks all.

Hammyman, i have claimed capital allowances for the previous years, i did not know you couldn't claim both. i guess what i will do this year is just claim the mileage allowance as my capital allowance is virtually run out with the car and i have done WELL over 10,ooo miles for business in the car

That won't wash. They will expect you to stick with that method until it reaches change time.

Once all the balance is written down you can probably start claiming the 40p but until that time you claim your WDA and actual costs incurred.

Tbh I find it unlikely that your CA wouldnt clear in 1 year. Just how big is this business? and what is the current pool?

blokes2

the capital allowance is just the car ive had it for three and a half years 11000 from new so its just down to around 600 capital allowance now. its my biggest expense turnover is around 12000 a year

opinions4u

What does you accountant do for his money?

blokes2

i dont have one it was too expensive my turnover is too low to pay for it