Director claiming 40p per mile

[CALTD]

Can a director who runs his own company claim on his tax return a mileage allowance for business mileage even if he has not actually reimbursed himself out of the company.He has paid all the fuel out of his own pocket.

ie Travelled 10000 miles. Can he claim £4000 as an expense on his own return.?

Thank you for any help

[Dave_P]

You tell us, you're the accountant!

[The answer is yes by the way]

[Instinctive]

A Director is an employee of the company, just like any other employee.

Any employee who has incurred business expenses, including business mileage, is able to claim flat rate mileage allowance at the prescribed rate (40p upto 10,000 miles and 25p thereafter) less the amount actually reimbursed by the employer.

I assume in your case that the Director uses his own car, ie it is not a company car.

Ramnik

[Lambs]

It would normally be more efficient for the payment of the mileage allowance, e.g. by Cr to the DLA, surely?

The company gets a deduction, and the employee gets £4,000, and not £1,600? (1st 10k miles).

Hi Ramnik, long time no see.

Best regards for the New Year,

Lambs

[Instinctive]

Hi Lambs,

If I am not mistaken, we first met here the previous Christmas.

How time passes by.

Best wishes to you as well.

Take care.

Ramnik