My personal client has incurred unreimbursed mileage in a close company that he is one of the directors and shareholders. As the company has not generated any profits yet no salary or dividends have been paid to my client. I have entered the mileage costs on his SA return under employment expenses. However the tax calculation does not give him any relief for this against any of his other taxable income, another employment. Is this a glitch in my Sage software or can relief not be claimed where there is no employment income to set it off? If this is the case is he better claiming the mileage relief once the company pays him a salary?
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"unreimbursed"
When you say "unreimbursed", is that to say that he might be reimbursed in future? Would it not have been easier to credit his Director's loan account with the mileage claim, and then he can draw down the DLA when the cash is available?