45p mileage allowance – per person or per vehicle?

Accounting, Businesses, Personal Tax, Uncategorized l

car on coinsOne way of paying for travel by private car is for a claim for business related mileage to be made, at up to 45p per business mile for the first 10,000 per annum and up to 25p per mile thereafter. This is typically using your own car, but it could be a hired, borrowed or shared car too.

A question which has recently arose is whether the 10,000 miles per annum is per person or per vehicle.

The answer is quite simple – its’ per person!

Unfortunately this means that it isn’t possible to justify the purchase of that summer soft top so you can claim business miles 10,001 to 20,000 each year as being in that second car (sorry!).

On the flip, it does mean that a couple or family sharing a car for business trips could claim for more than 10,000 miles per annum at 45p in the same vehicle.

Any queries about how best to structure your motoring and travel costs, please contact our team on 01904 691141.