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Where Taxpayers and Advisers Meet

Flat rate mileage to Partnership or Personal?

Marshiewoo
Posts: 3
Joined: Sun Jul 21, 2019 9:53 pm

Flat rate mileage to Partnership or Personal?

Postby Marshiewoo » Sun Jul 21, 2019 9:59 pm

Hi,

New here, unfortunately HMRC were unable to help me with my question, I suspect because it was 21:45 on a Sunday and they want to get out of the office.

I have a partnership with 1 other partner, both vehicles owned by each partner.

We've been making logs of our mileage, addresses etc... but obviously with a partnership self assessment we also have to do our own personal self assessment.

The question is, which self assessment can I deduct the flat rate mileage from? Initially I thought it would make more sense to do this out of the personal self assessments, due to them being separately owned vehicles with their own costs involved... help! :roll: :lol:

Thanks! :)

Marshiewoo

robbob
Posts: 2800
Joined: Wed Aug 06, 2008 4:01 pm

Re: Flat rate mileage to Partnership or Personal?

Postby robbob » Mon Jul 22, 2019 8:59 am

Marshiewoo

I would normally expect (it being the simplest solution) a business partnership to reimburse partners at the approved rates for business mileage (presuming thats the method used) and claim this amount as an expense in the partnership tax return. Practicably speaking the partners have been reimbursed tax free their "business mileage costs".

Jholm
Posts: 80
Joined: Mon Mar 11, 2019 4:22 pm

Re: Flat rate mileage to Partnership or Personal?

Postby Jholm » Mon Jul 22, 2019 1:26 pm

^ Easier solution. Alternatively, the partnership profit/loss split needs to be adjusted in line with their relevant expenditure.

bd6759
Posts: 3090
Joined: Sat Feb 01, 2014 3:26 pm

Re: Flat rate mileage to Partnership or Personal?

Postby bd6759 » Tue Jul 23, 2019 8:17 am

All expenditure has to go in the partnership accounts. You cannot claim additional expenditure in your tax return.

Marshiewoo
Posts: 3
Joined: Sun Jul 21, 2019 9:53 pm

Re: Flat rate mileage to Partnership or Personal?

Postby Marshiewoo » Fri Aug 02, 2019 6:17 pm

Thanks guys, any idea which box to enter the flat rate mileage expense for the partnership?

Marshiewoo
Posts: 3
Joined: Sun Jul 21, 2019 9:53 pm

Re: Flat rate mileage to Partnership or Personal?

Postby Marshiewoo » Fri Aug 02, 2019 6:22 pm

Marshiewoo

I would normally expect (it being the simplest solution) a business partnership to reimburse partners at the approved rates for business mileage (presuming thats the method used) and claim this amount as an expense in the partnership tax return. Practicably speaking the partners have been reimbursed tax free their "business mileage costs".
Thanks robbob and everybody!

With this in mind, the partnership bank account is used for diesel costs :cry: I just can't get my head around how I would work this?

bd6759
Posts: 3090
Joined: Sat Feb 01, 2014 3:26 pm

Re: Flat rate mileage to Partnership or Personal?

Postby bd6759 » Sat Aug 03, 2019 9:32 am

... the partnership bank account is used for diesel costs
You'll need to stop doing that, or charge it to the partners' capital accounts. The diesel is not used exclusively for the trade, therefore is not wholly a tax allowable expense.

Why not engage an accountant? That is a tax deductible expense.


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