My client is in full time employment and has a company which which he only gets reimbursed 12p per business mile. Can I claim the difference back between that and the statutory 45p? I just need you guys to confirm this as it will generate a refund for him.
It's not a statutory amount otherwise it would be illegal to pay the 12p. Also he doesn't need to own a company to do this. He cannot claim the difference back but can claim relief on the shortfall. See the manuals www.hmrc.gov.uk/manuals/eimanual/eim31330.htm
As Ana side.....if was only getting 12p I would refuse to use my own car, in fact I did when someone tried to offer me below 45p a few years ago! Hope his personal car insurance covers him for work use. Might be worth checking if his place cover his insurance and any part of his servicing costs given they pay mileage at such a low rate. I've come across both before.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Ahhh, makes a big difference. The 45p rate is for employees using their own cars as it is supposed to give them reimbursement over and above the payment for fuel, ie to cover wear and tear etc.
Looks like he is already on a different rate to the advisory rate. You will need to check if that has changed during the year, the advisory rate I mean, PLUS what he is being paid by his company
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
