Taxwise Accounting
Avondale Lodge
Whitehall Road, Sale
Manchester M33 3WJ
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Registered office:
Avondale Lodge
Whitehall Road
Sale, Manchester M33 3WJ
Complete the contact form for a reply within 2 hours
We can be contacted by:
Phone: 0161 240 3701
Email:
office@taxwise-accounting.co.uk
Arrange a time for us to
call you back HERE
Arrange a meeting using
our online calndar HERE
Registered office:
Avondale Lodge
Whitehall Road
Sale, Manchester M33 3WJ
Complete the contact form for a reply within 2 hours
0161 240 3701
CONTACT
Taxwise Accountants
Avondale Lodge
Whitehall Road, Sale
Manchester M33 3WJ
JOIN US ON...
Taxwise Accountants Ltd | Registered in England & Wales | Registered No.: 08416929
Copyright © 2013 by Taxwise Accountants Ltd · All Rights reserved · E-Mail: office@taxwise-accounting.co.uk
Helping local businesses to grow and pay less tax | Small enough to care
Mileage Tracker
For limited company directors, purchasing a car through your company can be an expensive option as the taxman imposes high tax charges if a car is "available for private use". Note the word "available" - it is not good enough to simply not use a company car for personal trips - if the car is not a pool car and the director parks the car at home, then the taxman takes the view that it is being used for non-business purposes and benefit-in-kind (BIK) tax charges apply. It gets even worse if the company pays for all fuel for the car aswell.
This is why, for a lot of small companies, it works out much cheaper to own the car personally and charge the company a mileage rate. Mileage payments made to an employee or director are tax free up to a maximum of 45p per mile for the first 10,000 miles in any tax year and 25p per mile thereafter.
The company also gets corporation tax relief on the amounts paid to the director for business miles travelled.
So, if you do (say) 10,000 business miles in a year, that equates to £4,500 that you can take from the company, tax free. The company's corporation tax bill would then also be reduced by £900 (4500 x 20%).
As with all things tax related, the taxman won't take your word that you travelled 10,000 miles in your own car on company business. This is where it is important to keep a log of all your business mileage and we have provided a template mileage log which can be downloaded here.
If you would like any help or advice, please contact us.
This is why, for a lot of small companies, it works out much cheaper to own the car personally and charge the company a mileage rate. Mileage payments made to an employee or director are tax free up to a maximum of 45p per mile for the first 10,000 miles in any tax year and 25p per mile thereafter.
The company also gets corporation tax relief on the amounts paid to the director for business miles travelled.
So, if you do (say) 10,000 business miles in a year, that equates to £4,500 that you can take from the company, tax free. The company's corporation tax bill would then also be reduced by £900 (4500 x 20%).
As with all things tax related, the taxman won't take your word that you travelled 10,000 miles in your own car on company business. This is where it is important to keep a log of all your business mileage and we have provided a template mileage log which can be downloaded here.
If you would like any help or advice, please contact us.
