Mileage Allowance

adypem

I have just started trading with my own Ltd company, can I still claim 40p/mile for the first 10,000 miles and then 25p/mile after ?

I have just been awarded a 6 month contract and after speaking to my accountant they believe that it might be tricky to claim this as I will be travelling to the site every day. My contract has been checked and I am outside of IR35 so I thought this would be a given

Also is it worth trying to get a dispensation agreement with the revenue for daily subsistence ?

dejongj

I hope you still can as I have been doing that for the last 11 years! If I was wrong I would be in serious trouble...

In my interpretation the key is that you have a 6 month contract, so when starting it you do not know whether you will be there for more than 24 months...As such you should be able to claim upto 40p for the first 10k miles and 25p there after....

Remember that when using the word claim, it basically gets off-set against profit and thus taxes paid....

I think it is worth getting the dispensation agreement, but you should discuss that with your accountant. He/She might have that covered already.