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45p per mile up to 10,000 miles but in what year?

Didn't find your answer?

I realise that by 'the year' for the 10,000 miles @ 45p per mile it's 6th April to 5th April (for companies and sole traders). However, what is the sole trader has a different financial year end? I'm assuming that would not have any bearing on the dates of the calculation.

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By SXGuy
18th Feb 2020 18:55

If you follow the basis that it's every 12 months, it won't make a difference when your year end is.

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Replying to SXGuy:
RLI
By lionofludesch
19th Feb 2020 08:18

SXGuy wrote:

If you follow the basis that it's every 12 months, it won't make a difference when your year end is.

I'm not convinced that that's true. It very much depends on whether you have exceptional years or, possibly, a seasonal business. Commencement and cessation will be factors too.

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By Accountant A
18th Feb 2020 20:59

For employees it's by tax year and the rates, when they change, do so by tax year. As SXG suggests, it's unlikely to be something that HMRC would sweat over if the method used was applied consistently.

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Replying to Accountant A:
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By The Dullard
19th Feb 2020 10:20

Yes, but then there'e the right answer, of course.

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Replying to The Dullard:
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By Accountant A
19th Feb 2020 16:12

The Dullard wrote:

Yes, but then there'e the right answer, of course.

How often do you see that on here??

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By The Dullard
19th Feb 2020 10:26

RTFL

ITTOIA 2005, s94F reads, "In calculating the profits of a trade for A PERIOD*, the appropriate mileage amount is M x R, where:..."

*Now the period concerned is one for which profits need to be calculated, and whilst it will generally be twelve months, it won't always be; it could be longer or shorter than 12 months.

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By thomas34
19th Feb 2020 11:57

It's for the tax year although I do cheat sometimes by using a March year end as 5 April.

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Replying to thomas34:
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By The Dullard
19th Feb 2020 12:54

So you haven't read the legislation either?

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