Company car Mileage claim

Leasouf

My daughter has a company car, but, she pays all the fuel bills and then has to put in a business mileage claim and the company pays her 12p per mile
What mileage does she claim as business mileage and what is private mileage?

The company has said that her mileage between home and office is classed as private mileage.
But then that mileage from the office to a client's or another company office is Business Mileage, but that the mileage back home in the evening is private mileage.
She lives south of her office, so on a 250 mile trip from her office to a client they say that she should pay for the homeward leg that can be 280 miles plus.
Can somebody please explain what is correct and how the tax man sees this! It seems like she is paying a large ammount of the companies mileage.:rotfl: Not funny really !

Mac2308

Private mileage is the distance from home to normal place of work. Business mileage is all other mileage. If first appt is closer to home than office then business mileage cannot be claimed. The mileage from last appt to office is business mileage and from office to home is private.

Kilty_2

The way I did this was "total home to office return trip X miles" "total other business use Y miles" total claim Y-X.

Paul_the_Painter

The accepted way to sort this out is pretty simple.

Home to Office - definately private mileage - say 10 miles

Office to Home - again private mileage - another 10 miles

All other mileage during working day = business mileage

Easiest way to work it out is to zero the odometer before getting in the car in the morning, note mileage at the end of the day - when she gets home, subtract 20 miles.

The idea is that she should not get "free" trips to work and back, but she should not be disadvantaged by doing work mileage.

I imagine that is what the company means by she should be paying for the "homeward leg" they are not asking her to pay for 280 miles, but what she would normally pay. i.e. 10 miles

Leasouf

The problem is here that the company is saying that she claims private mileage from Hampshire to her Berkshire office and then the mileage 'to a job' in Birmingham she's to claim as business mileage.
But, on the homebound leg, that is classed as private mileage even if she goes via office or straight home. So if she is sent to work 100 miles from the office each day and returns home each night, in a 5 day week she would be paying for 5 X 100 mile homeward trips.

She has to pay all her fuel herself on her credit card not her company credit card and then claim back her business mileage back using a trip log of where she has been. The company have now not paid two months business expenses that include the business mileage as they have rejected several thousand miles of homeward trip mileage.
She now has a late card payment charge and interest on her card that she's never had as the guy that signs off the expenses has gone away on business and refused to sanction any of the expense claim until she re-submits the whole expense claim showing homebound trips mileage from clients offices or the companies manufacturing outposts as private mileage which is a considerable mileage and a some cost diesel wise.

Surely this is wrong, it's like BT or Everest sending engineer or window fitter out for the day and then expecting him to fill the tank to get home :-(

spiro

Leasouf wrote: »

The problem is here that the company is saying that she claims private mileage from Hampshire to her Berkshire office and then the mileage 'to a job' in Birmingham she's to claim as business mileage.
But, on the homebound leg, that is classed as private mileage even if she goes via office or straight home.

The firm are taking the p*ss. As has already been said your business mileage claim is the distance travelled in a day minus the return distance from home to her usual place of work (office). So if home to office is 50 miles but home to client site is 150 she can claim (150*2) - (50*2) namely 200 miles not 100 which is what they guy is saying she can claim. I suggest she requests a copy of the companies expenses policy from HR, this should support her.

LandyAndy

I have always believed that it is as descibed by Paul the Painter. Business miles on a working day are all miles above what would be done on a normal trip from home to office and back (regardless of whether she actually goes to the office or not).

spiro

A quote from HMRC:

What counts as business mileage?

Business mileage is mileage you travel doing your job. It can include travel to a temporary work place but it doesn't include:

• normal travel between home (or anywhere that is not a workplace) and your permanent workplace
• private travel