Mileage

Mileage

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I have a client (a director of a ltd co) who works on various motorway sites around the country and is claiming mileage allowance at the approved IR rate.

His work involves travelling to a number of different sites and he does not work on any particular site for more than 2-3 months at a time.

So far this year his total claim comes to more than £13,000 (46,000 miles).
What extra documentation should I advise him to keep if this is challenged by the revenue. The car was purchased new and he has kept detailed mileage logs should he keep something else?
Peter Watkin

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By John Savage
21st Oct 2004 09:40

High Claims
Your client, whom I assume is using his own personal vehicle, is entitled to claim 40p per mile for first 10,000 miles, then 25p per mile (unlimited) thereafter in any tax year. Provided he keeps within these parameters, as far as I am aware he is not taxable on it, and it does not even have to be reported on a P11d. He must, as he sounds like he is doing, keep a proper mileage log, and it is assumed he is making some sort of formal claim on an expenses form, say monthly, for his mileage. It is adviseable that this is also checked and verified by another director of the company. Maybe to help support his mileage log, if ever challenged by the Revenue, he ought to have a diary with entries outlining what he did in any particular day.

If the Revenue do mount a challenge, he will just have to be extremely positive and sure of his case in resisting the challenge.

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By james_associates
26th Oct 2004 12:34

High Mileage Driver
Are you sure that your client wouldn't be better off with a compamy car? His costs of ownership must be enormous just to get back basically his fuel costs per mile.

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By AnonymousUser
21st Oct 2004 12:59

Service Records
The Revenue regularly request sight of service records for large claims like this. In addition invoices for items like tyres will assist in strengthening your client's case.
You should also ensure that there is sufficient leeway between the total mileage undertaken and the mileage claimed for, to justify any personal use of the car.

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