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Where Taxpayers and Advisers Meet

Company miles in own car

Posts: 20
Joined: Fri Sep 11, 2015 12:39 am

Company miles in own car

Postby NickPrice » Mon Dec 03, 2018 3:55 pm


I'm considering setting up a Ltd co to manage rental property, including my own portfolio. At present I do business miles as a landlord and my accountant uses that as expense. If I set up the Ltd Co. how would the mileage be accounted for? Would the company need to buy a car, or can I use my privately owned car and claim 45p per mile for the first 10,000 miles as a private person? If so how do we distinguish between my allowance as a person, vs the one of the company. I hope this makes sense to someone.

Posts: 1863
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen

Re: Company miles in own car

Postby wamstax » Mon Dec 03, 2018 5:42 pm

If the company purchases a car you have the complication of trying to argue that it cannot be used privately and is solely for business to avoid taxable car benefits and/or fuel benefits.

If however you own your own vehicle and use it for business purposes then the the company can pay you the tax free mileage allowance quoted by you, however in this instance you would be well advised keeping a contemporaneous record of business mileage showing full details of each journey including the company business purpose of the trip and eg customer or client etc visited.
regards and hope this helps
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