Mileage expenses - who is right?

[chris79]

I began my Limited almost a year ago, and when I set it up I took some advice from a professional accountant.

I was advised that I can claim 40p/mile for the first 10,000 miles, then 25p/mile after this.

I was also advised I can claim 9p a mile additionally for fuel costs based on my engine size etc.

On this basis (as I do my own accounts/book keeping), I setup a spreadsheet for every daily journy to calculate my 20 mile round trip on the basis of:-

20 x £0.40p
20 x £0.09p

I have therefore spent the last 10 months paying the total of this as an expense from my company account etc.

My colleague who is in exactly the same position as me saw a different accountant last night who advised that you should be claiming either/or, but not both.

When I put this back to my own accountant today, he told me that his way is correct and that my colleagues accountant mean you can't claim 40p a mile AND claim your full petrol receipt as an expense.

Can anyone help put my mind at rest here? Searched the forums but couldn't find anything related.

Thanks!

[TheFaQQer]

I've never heard about claiming an additional 9p a mile.

I claim 40p a mile up to 10000 miles.

HTH.

[51st State]

Yep - I claim 40p for the first 10k, 25p after that.

[Archangel]

I began my Limited almost a year ago, and when I set it up I took some advice from a professional accountant.

I was advised that I can claim 40p/mile for the first 10,000 miles, then 25p/mile after this.

I was also advised I can claim 9p a mile additionally for fuel costs based on my engine size etc.

On this basis (as I do my own accounts/book keeping), I setup a spreadsheet for every daily journy to calculate my 20 mile round trip on the basis of:-

20 x £0.40p
20 x £0.09p

I have therefore spent the last 10 months paying the total of this as an expense from my company account etc.

My colleague who is in exactly the same position as me saw a different accountant last night who advised that you should be claiming either/or, but not both.

When I put this back to my own accountant today, he told me that his way is correct and that my colleagues accountant mean you can't claim 40p a mile AND claim your full petrol receipt as an expense.

Can anyone help put my mind at rest here? Searched the forums but couldn't find anything related.

Thanks!

The 9p a mile is if you have a company car, but pay for the fuel yourself
The 40p/25p a mile is for business use in a private car

These are mutually exclusive.

(the rates for company cars are below:

Engine Size Petrol Diesel LPG
1400cc or less 9p 9p 6p
1401cc to 2000cc 11p 9p 7p
Over 2000cc 16p 12p 10p

HTH)

[Fred Bloggs]

Before the system was "tinkered with", mileage claims were adjusted by the capacity of engine. But not any more.

[Archangel]

Before the system was "tinkered with", mileage claims were adjusted by the capacity of engine. But not any more.

The rates I gave above were for claiming for business mile IN A COMPANY CAR, they change frequently, the rates are now actually:

Engine size
Petrol
Diesel
LPG

1400cc or less
11p
11p
7p

1401cc to 2000cc
13p
11p
8p

Over 2000cc
19p
14p
11p

[Ardesco]

My accountant has always advised me that the 40p/25p per mile option is the most efficient way. I've never heard of an extra 9p per mile added onto these figures before.

Are you sure this is nothing to with a VAT portion of your mileage claim? If so you can claim 40p/25p per mile personally and then your company can claim the VAT back on it as well. I believe you need to have VAT receipts for all fuel claimed however.

I have never bothered with it TBH, to much hassle collecting receipts and working out the VAT portion etc.

I'm not sure what the amount you can claim back per mile in VAT is but 9p per mile sounds like it's the right sort of ball park.

[VectraMan]

I'm not sure what the amount you can claim back per mile in VAT is but 9p per mile sounds like it's the right sort of ball park.

It's 2p per mile for VAT, or the most you can show receipts for (which is a bit less than 2p per mile, even at 33mpg).

I used to do it before I joined the FRS.

However I once spoke to someone from the VAT office, and he told me you can also claim back the VAT on things like servicing in the proportion of business to private use. But I never bothered.

[chris79]

This is quite worrying, it gives me little confidence in my accountant if he has advised I should be claiming both 40p and 9p for every mile (and no, there's no mention about this 9p being VAT).

[TheFaQQer]

This is quite worrying, it gives me little confidence in my accountant if he has advised I should be claiming both 40p and 9p for every mile (and no, there's no mention about this 9p being VAT).

Sounds VERY worrying to me.

Ask him for a reference on the HMRC website where it explains this - so that you can share it with us lot...