Can Business mileage be claimed ?

Can Business mileage be claimed ?

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I have a client who is a Director of a Ltd Company and lives 100 miles away from the office and so commutes to work on a Monday, stays locally for the week and then travels back home on a Friday night.

I have advised that this travel is travel to and from work albeit a long way and as such cannot be claimed. He is adamant that he can claim it so i just wanted to check whether i was missing anything or whether my position is correct.

Thank you 

Replies (6)

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By The Innkeeper
29th Nov 2013 10:34

I usually

get the client to agree with my view by suggesting that for £45 (100 x 45p - assuming the car is not a company car)  and that the actual cash value to him is £9 (£45 x 20%) .This would make a total of £468 actual cash in his pocket over a year. Explain the potential grief that HMRC could inflict on him for this sum . Is it worth it ,of course not.

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By Steve Kesby
29th Nov 2013 11:17

What do you mean...

... by "the office".

Company owner-managers have a tendency to locate their offices near to where they live. Is it a contractor attending a client's office 100 miles away? If so, how long is the contract expected to last?

If not, I agree that it's non-allowable. Suggest he keeps an office closer to home. By non-allowable, I mean that if the company chooses to pay it, it's deductible from the company's profits chargeable to Corporation Tax, but taxable (and NICable) on the director as pay, meaning that it is probably better for the company not to pay it.

@ The Innkeeper - It's 100 miles each way so it's approaching £936! :) I expect the cost that the client is most concerned with though is the accommodation during the week.

Incidentally, the tax relief (if it's allowable) is 20% in the company plus whatever the directors marginal rate of tax is, which might be 40% or even 45%. So 200 miles a week might be worth nearly £3,000.

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By ver1tate
29th Nov 2013 17:12

mileage
200 miles per week at .45 per mile£90.00normal weeks worked in a year allowing for holidays 49£4,410.00

Seems that holiday weeks are being forgotten, and calculations made on a 52 week year.

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By Steve Kesby
29th Nov 2013 17:20

Yes, but...

... if he takes his holidays mid-week he has to get home before his holiday and then back to work at the end again.

So you end up with 55  x 200 miles = 11,000; 10,000 x 45p and 1,000 x 25p = £4,750. :)

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By ver1tate
29th Nov 2013 20:28

Yes, but...

Do you take your holidays mid week. As captain Mainwaring said ' realms------'

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Replying to John R:
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By ver1tate
01st Dec 2013 17:56

What if

fawltybasil2575 PM       | Sat, 30/11/2013 - 01:30

 

Were you just going to bed after watching yet another repeat on TV? Or were you out on the tiles, and just HAD to look up AWEB at that time in the morning?

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