driving instructor

[Maxwell1]

Hello all,
can a driving instructor use the approved mileage rate for handiness (£0.40 ppm for first 10,000). As they have to maintain a log of lessons there is a clear record of mileage travelled - lessons range between 10 and 15 miles depending on location of clients home relevant to test routes.
This would save a lot of time and avoid having to collect receipts on an on-going basis.

Any help would be appreciated.

Thanks

[pawncob]

Presumably he'll want to claim capital allowances on the vehicle, unless it's leased, so the mileage allowance won't be suitable.

[Maxwell1]

Hello pawncob,
when you say not suitable do you mean not permitted or just that this would be a better way to help offset tax due. The revenue seems to leave this decision to the person to make the whole process of record keeping simplier.

Thanks

[pawncob]

Approved mileage rates cover ALL expenses associated with the vehicle. No further claims are permitted.
It's normally better to claim actual costs incurred and capital allowances, but do the maths to find out.

[Ray Coman]

I suppose with a high proportion of the mileage allowance at 25 pence, the tax advantage to claiming the mileage allowance would be lower.