Small Business Mileage Query

Robert1962

Started a new Partnership small business on 1st Jan 2012 and going to charge the business mileage allowance of 40p per mile for first 10k miles and 25p thereafter.

Going to finish our first year end on 31.3.2012

As our first trading period will only run for 3 months, can we still claim up to 10k miles at 40p or are we only allowed a proportion (i.e. a quarter of 10k) ?

chalkie99

It's the first 10,000 miles in the tax year and the rate is actually 45p.

[Deleted User]

You can charge what you like, it's the allowance that is 45p/10000 miles.

Why not put your first accounts in after 15 months?

Pro rata

Robert1962

Thanks for the relplies.

Couple more questions..

1) In a partnership is the claimable mileage allowance per person or divided between the two ?

2) If one partner has had a business earlier in the financial year and claimed a mileage allowance in that, does this affect allowances in the new business ?

steve1980

Why don't you speak to your accountant? If you haven't got one then get one.

pjclar02

Hello there

1) The mileage allowance limits are available for each individual. Therefore, each partner can claim their first 10,000 miles in the tax year at 45p per mile.

2) I believe as it was the individual's own business, then the rule is that the 10,000 miles is for the tax year. Therefore, if 5,000 miles were used in the earlier business, only a further 5,000 miles can be claimed within the partnership.

I know it is different for employees - i.e. they can claim 10,000 miles per employer, but I am fairly certain that this does not apply to the self-employed.

Someone will correct me if I'm wrong - I'm sure!