SA client buisness mileage

SA client buisness mileage

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SA client a builder with transit van (has use of personal motor car)

Mileage as per MOT certificate 11,312 (We have last 4 years) vehicle not registered in a business name, owned not any lease

Motor expenses claimed as per HMRC rates, however compliance is demanding full mileage logs, which seems a little excessive, "to verify your clients status" failing which they intend to disallow all motor cost. And whilst the client could produce a log guestimate, since he knows who his clients were, this appears to me as something to be done simply to satisfy a jobsworth, and would not in fact prove anything.

Thoughts?

T/Y

Replies (4)

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By Cupid Stunt
20th Apr 2016 18:20

I agree.

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By thehaggis
20th Apr 2016 19:00

Motor expenses claimed as per HMRC rates

How did he do this without a record of the miles claimed?

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By Cupid Stunt
20th Apr 2016 19:07

He has a van. He has a car that he uses for private use. Ergo all of the van's mileage is business mileage.

31 March 2014 the mileometer says 25,000 miles.

It gets MOTd on 30 June 2014 and the certificate shows a mileage of 30,000.

31 March 2015 the mileometer says 45,000 miles.

It gets MOTd again on 30 June 2015 and the certificate shows a mileage of 50,000.

We deduce that the number of miles travelled in the year ended 31 March 2015 is £20,000, all of which are business miles, and so we claim motor expenses at mileage rates of £7,000.

Anybody that has a problem with that will need to show that there is actual private mileage to rebut the taxpayer's assertions at a trbunal.

Why does there need to be a mileage log? Just because some dumb-[***] at HMRC says so?

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By SteveHa
21st Apr 2016 09:35

There doesn't need to be a mileage log if it's 100% BU. I'd simply detail your methodology and calculation to HMRC.

Probably safe to assume that his base of operations is also his home, in which case HMRC can't even claim home to office.

Tell them if they don't like it you'll see them at FTT.

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