Mileage allowance

- Monday, February 17, 2014

Mileage allowanceWith the heavy tax on company cars it has become very popular to use your own car for business and then claim back mileage allowance.

Claim your allowance

If you are self-employed or a director of your own business you would always apply the full car mileage allowance of 45p per mile for the first 10,000 miles and then 25p per mile after that.

This is tax free so effectively you can take it out of your business without paying tax. This allowance covers petrol, insurance and repair and maintenance of the car, therefore, you cannot claim any other expense against your car. Naylor Accountancy Services will always ensure that their clients keep sufficient records to meet HMRC criteria.

If you are employed and your employer gives you less than 45p per mile (first 10,000 miles) then you can claim the difference off your HMRC tax bill through a self-assessment form.

At Naylor Accountancy Services we advise all our clients to keep a mileage log book in their car so that they can easily make a note of any business mileage they do as it all adds up.

If you would like to find out more about the mileage allowance and how it may affect you please contact me on 01892 710 510 or email me at Nikolai@nayloraccountancy.com