Tax Forum :: Free Tax Advice

Hello,

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.

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.