Understated mileage

thesatchell

Hi everyone,
My accountant has understated my mileage for the past 4yrs and I would like some independent advice on claiming this back.

I am a self employed person operating as a limited company and I currently drive my own car for business; c.25k per year. The business has previously repaid nothing towards any mileage expense.

I have the prerequisite historical mileage records to support the claim.

I currently have a business loan which I've used for growth, my intention is to claim the money back and reinvest in to the business to pay off the business loan.

I'd like to know;

1. If I claimed this back in a lump sum, how would this affect the business (especially with year end looming)

2. Can I make a retrospective claim after year end?

3. Any advice / experience if anyone has been through this?

Many thanks,

Dazed_and_confused

I am a self employed person operating as a limited company

So not self employed.

Aren't these questions you, the employee, should be asking yourself, the director of the company?

What is the current relationship with your accountant?

00ec25

why do you say it is understated? has the accountant allowed fewer miles than you tried to claim? has the accountant simply not processed whole claims?
what rate has been paid? if you did 25k per year then 15k of that is down to 25ppm - is that what you mean by "understated"?

are they all genuine business miles to temporary workplaces? No falling foul of the 2 year (and/or 40%) rule?

thesatchell wrote: »

1. If I claimed this back in a lump sum, how would this affect the business (especially with year end looming)

your company will go bust and as its director you will be sent to prison for incompetence?

thesatchell wrote: »

2. Can I make a retrospective claim after year end?

the claim is a claim against the company. As the director of the company it is up to you whether the company allows a claim going back x years. For accounting purposes the transaction is dated at the date of the claim, not the dates of the journeys, so the claim will fall entirely in the current accounting period. Whether you want to pay your accountant to re-open and refile accounts for previous years by including accruals in prior years is a different matter

thesatchell wrote: »

3. Any advice / experience if anyone has been through this?

yes, ask your accountant, they have done it before

sheramber

Do you mean

no mileage allowance has been paid to you by the company

Your accountant has claimed tax relief on your business mileage but has claimed relief on less miles than you claim you have done.

If so, have you sled him why has he not claimed the full amount?