Multiple cars in self employment - mileage allowance calculation

roplabda

Hello!

I am self-employed. I have been using one car in my business so far, however, I have now brought another car in the business.

(FYI: Both cars are used for private and business so that total mileage is spread between two cars rather then amortising one car with lots of miles.)

Question 1

I will be claiming the annual mileage allowance on both cars (let's assume for now); (Btw, I am happy with this rules re expenses vs mileage base...)

What I am not sure about is, whether the first 10k miles at 40p is for each car separately, or I should add up all my business mileage and calculate total mileage allowance accordingly?

e.g.:
Car A has 12,000 business miles
Car B has 12,000 business miles.

How is the total mileage allowance calculated?:

1. Car A gets (10,000 miles x 40p) + (2,000 miles x 25p) = £4,500; and
Car B gets (10,000 miles x 40p) + (2,000 miles x 25p) = £4,500;
TOTAL allowance = £9,000.

2. Car A gets (10,000 miles x 40p) + (2,000 miles x 25p) = £4,500; and
Car B gets (12,000 miles x 25p) = £3,000;
TOTAL allowance = £7,500.

+ Where would this be in the leg?

Question 2

If it turns out that I would be better off with claiming mileage allowance on say Car A but actual expenses on Car B, then that's absolutely fine. I can have different bases on the twoo cars currently in business use and that doesn't affect the mileage rates for say Car A?

Thanks very much for anyone's reply - greatly appreciated.