quick question re. milage

freebie_junkie

hi, i just want to check is it 40p a mile for tax purposes? thanks

astonsmummy

yup last time i checked x

freebie_junkie

thanks very much

Raksha

There is an upper limit though (I can't remember what it is, but it's in the thousands)

ukbill69

Sole Trader

As a sole trader you have two options. The first is to accumulate the full running costs of the vehicle (including all items such as maintenance, insurance, fuel, tyres, and so on) and to then apportion that total cost between business and private usage. This apportionment should be based on mileage records which you should keep for business journeys. This can be as simple as a note in your diary of where you went and who you saw and the mileage.

The other option is to claim a fixed rate for each business mile. There are statutory rates published for such a scheme, so that you can claim 40p per mile for the first 10,000 miles and 25p per mile thereafter without suffering tax on the charge. If you use a value of more than 40p you will be deemed to be profiting from the business use. and the difference will be taxed.

Neither option includes additional costs such as parking fees, bridge tolls, congestion charges and so on, which can be charged against business income in addition to the vehicle costs discussed above.

Limted Company

As the owner/director of a limited company you are limited to a single option in charging for the use of your own car. This option is the fixed rate per mile discussed above. As described you can claim 40p per mile for the first 10,000 miles and 25p per mile thereafter without suffering tax on the charge. Similarly, if you use a value of more than 40p you will be deemed to be profiting from the business use. and the difference will be subject to tax and national insurance (as you are an director and employee).