The company's year end is 30 June 2011. The director has done 20000 miles during the year which he wants to claim from his limited company.He is the only director and shareholder in the company. I want your advise on my following mileage allowance workings which would be claimed in the company's annual accounts,
Tax Year 2010-11 Tax Year 2011-12 Total
15,000 miles 5000 Miles 20000 miles
*My workings considers the two tax years come in the company's year end 30 June 2011.But Colleague of mine who is an accountant advises me that the above calculations are not correct. According to him, the calculations are as follows,
10,000 miles @40P
10,000 miles @ 25P
Please advise me that which calculations are correct and fair.