Business mileage

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Hi, this maybe a bit complicated, but hopefully can explain it. I’m a sole trader using the mileage allowance on my car. But also I use my partners car when she needs my estate car. So firstly can I still claim the mileage allowance i.e. 45p per mile for the first 10,000 miles I do in business miles in a tax year then 25p thereafter when using her car? Too further complicate things I considering buying another car which would be used 100% for business. I would use the depreciation 18% and all bills method due to the high cost of the initial outlay but would still use my other car claiming the mileage allowance. I expect to do 8,000 miles in the car claiming mileage and 5,000 miles in the one claiming depreciation and all bills. Firstly would this be allowed? For private use I would solely use the mileage car, that way claiming 100% of the 18% depreciation and bills on the other car. I would also still be using my partners car now and again doing approximately 4,000 miles per year. Therefore can I claim all the 12,000 miles (10,000 at 45p per mile and 2,000 at 25p) and still claim 100% business use on the other car?

Replies (24)

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By Accountant A
06th May 2019 12:32

gfm198 wrote:

I considering buying another car which would be used 100% for business.

Good luck with getting that past HMRC.

You'd be best discussing all this with your accountant before going any further.

You seem to have mistaken this site for a free professional advice forum; it's not.

See here:
https://www.accountingweb.co.uk/about-accountingweb

"... the largest independent online community for accounting and finance professionals in the UK".

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RLI
By lionofludesch
06th May 2019 12:59

All this plan lacks is credibility.

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By gfm198
06th May 2019 13:40

Thank you for your replies. I don’t have an accountant, I’m capable of doing my own tax, just need advice to the rules, getting through to the tax office an is tough enough getting a definitive answer is even harder!! I declare all my earnings even cash payments, I also log down my mileage/locations each day and can prove every mile within reason. I declare ALL my earnings even cash payments. I don’t see this as lacking credibility it’s my scenario or are we not allowed to use our brains to make our self employment more tax efficient? Seemed like a forum to me as similar questions on business mileage and the jump down your throat responses smack me a s a forum!!

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Replying to gfm198:
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By Wanderer
06th May 2019 13:46

gfm198 wrote:

I’m capable of doing my own tax

Clearly you aren't!
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Replying to Wanderer:
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By gfm198
06th May 2019 16:55

Just because someone does not know everything tax rule under the sun does not make them incapable of completing a tax return, any half wit should know this!!

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Replying to gfm198:
RLI
By lionofludesch
06th May 2019 17:03

gfm198 wrote:

Just because someone does not know everything tax rule under the sun does not make them incapable of completing a tax return, any half wit should know this!!

Of course not.

They just need to know enough tax rules.

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Replying to lionofludesch:
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By gfm198
06th May 2019 17:10

Well clearly know one on his has a definitive answer so it’s obviously not just myself lacking the knowledge of the rule surrounding business mileage for a sole trader using different vehicles and accounting for them in different ways.

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Replying to gfm198:
RLI
By lionofludesch
06th May 2019 17:46

gfm198 wrote:

Well clearly know one on his has a definitive answer so it’s obviously not just myself lacking the knowledge of the rule surrounding business mileage for a sole trader using different vehicles and accounting for them in different ways.

There is no definitive answer.

You'll have to agree the facts with HMRC - and you've been wished good luck in doing so.

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Replying to gfm198:
RLI
By lionofludesch
06th May 2019 13:56

gfm198 wrote:

Thank you for your replies. I don’t have an accountant, I’m capable of doing my own tax, just need advice to the rules, getting through to the tax office an is tough enough getting a definitive answer is even harder!! I declare all my earnings even cash payments, I also log down my mileage/locations each day and can prove every mile within reason. I declare ALL my earnings even cash payments. I don’t see this as lacking credibility it’s my scenario or are we not allowed to use our brains to make our self employment more tax efficient? Seemed like a forum to me as similar questions on business mileage and the jump down your throat responses smack me a s a forum!!

Go for it then. Make sure you put all the details of your scheme in the white space on the return, otherwise HMRC can come back and bite you on the backside in a few years time.

We've told you what we think. We're used to folk complaining about how rude we are when we don't agree with them so don't worry about that.

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Replying to lionofludesch:
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By gfm198
06th May 2019 17:06

Not actually had a credible response and certainly nothing in the way of an answer..........

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Replying to gfm198:
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By Accountant A
06th May 2019 14:09

gfm198 wrote:

I’m capable of doing my own tax, just need advice to the rules,

I'm capable of doing my own brain surgery, just need advice on how to get the top of my skull off.

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Replying to gfm198:
ALISK
By atleastisoundknowledgable...
06th May 2019 22:09

gfm198 wrote:

... I’m capable of doing my own tax, just need advice to the rules ...

Which rules would that be, the tax rules that help you do your tax return?

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Replying to atleastisoundknowledgable...:
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By gfm198
07th May 2019 19:28

Read my question, it relates to business mileage, simple!!!!

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RLI
By lionofludesch
06th May 2019 14:52

Another satisfied customer. ©

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the sea otter
By memyself-eye
06th May 2019 18:12

We aim to please....

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By andy.partridge
06th May 2019 20:07

Sounds more like an exam theory question than a real life example.

I don’t know of any sole trader with no employees needing 3 cars to run their business.

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Replying to andy.partridge:
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By gfm198
07th May 2019 19:34

Luckily this is not an exam as there would be many failures!!!!

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Replying to andy.partridge:
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By gfm198
07th May 2019 19:34

Luckily this is not an exam as there would be many failures!!!!

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By justsotax
08th May 2019 09:08

sorry Stepurhan….did you not read the part:

"I declare all my earnings even cash payments"

I wasn't sure whether to stand up and applaud....I think I warmed to this one when the sentence containing 'half wit' was used (suggesting any numpty can fill in a return!?). Although on reflection I presume he can fill in the right box he just doesn't have a clue what number to put in their?!

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