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Company Car Mileage

I have a fellow Director who has a company car but wishes to use his own private car for longer journeys and the claim mileage at the private rate (45p a mile).

I have no objection to this - is it acceptable revenue wise? 

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Short answer: Yes it's acceptable

Just because he has a company car doesn't mean he can't use his own car for business mileage.

See here for rates etc: http://www.hmrc.gov.uk/paye/exb/a-z/m/mileage-expenses.htm

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Good record keeping is a must

Picture the scene. HMRC come in to do a PAYE review. They will obviously have a look at directors and also company cars and so will see said director has a company car. They will also see said director's regular claims for mileage @ 45ppm.

Without a shadow of a doubt, they will be all over this like a rash thinking that they have spotted some non compliance. If your paperwork doesn't stack up, including proof that the director's private car was actually used for these journeys and not the company car, then you may have a problem

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