Batty Girl
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Private car expenses

Private car expenses


Hoping someone can confirm whether I'm right on this. 

If an employed personal uses their own car for business use but does not receive any compensation from their employer they can claim the 40p/25p a mile approved rates in box 17 of the employment pages but cannot claim either actual motor expenses or CA's.

If someone had asked me the question yesterday I would have answered without hesitating and the notes to the employment pages seem to agree with my understanding, but I've been thrown by the outgoing accountant claiming business fuel (using the actual price not the approved rate) plus a percentage of road tax, finance charge and capital allowances (although restricted to £3k as expensive car).

Many thanks



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26th Aug 2010 16:37

You are correct

Employees are only allowed to use the Mileage rates whether they are actually paid the amounts allowed or they are claiming a deduction.

God knows what the previous accountant thought they were doing and you should probably assess whether there has been an overclaim and how much.

If there is the outgoing accountant should probably be liable for something as this isn't a misinterpretation of the tax law, it's just wrong.

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27th Aug 2010 15:37

You used to be allowed to claim based on actuals

But from memory, that stopped circa 2002, so the old accountant is a tad out of date.....

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27th Aug 2010 15:49

Thank You

Thanks to you both for your replies.  It's nice to know I hadn't completely missed an opportunity for several of my other clients on this one.

The previous accountant is retiring (hence the client moving to me) so I guess he's being doing returns since long before the change and wasn't aware that you couldn't do this any more. 

Thanks again.


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