Mileage Claims
For most small companies running a car through the company can prove more expensive from a tax point of view. This is because the car will usually be considered available for private use and that creates a taxable benefit in kind for the individual. Where the car is regularly parked outside the owner’s home, which will often also be the office for small companies, it is virtually impossible to prove otherwise. For this reason, we would normally advise our small company clients to use a private vehicle for business travel.
The expense of business travel is brought into the company through the use of mileage rates. These are the costs per mile that can be brought into the company for journeys made on the company’s behalf. It is best practice to keep a log of business journeys as HMRC is more likely to challenge estimated figures with a view to reducing the claim. Mileage claims are not restricted solely to cars and vans. There are mileage rates for motorcycles and bicycles as well. The current amounts that can be claimed per mile are as follows
- Cars and Vans - First 10,000 miles in a year - 45p, Over 10,000 miles in a year - 25p
- Motorcycles - Flat rate - 24p
- Bicycles - Flat rate - 20p
If additional employees of the company travel in the same vehicle, an extra 5p per mile can be claimed for each passenger.
We always look to claim mileage for all our company clients, as well as considering other costs paid privately. If you would like us to help us with your company, please call us on 01892 807001.
