Tax Relief on Mileage

Tax Relief on Mileage

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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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By thisistibi
19th Jan 2012 12:25

"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?

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Replying to Manchester_man:
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By LOUISEWALSH
20th Jan 2012 11:17

Thanks for your response, as I do not act for the company only the individual I will advise him to credit his directors loan account with the mileage.

Kind regards

Louise

 

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