Mileage Allowance Relief Explained

[@JuniperLynx]

Hey guys, thanks for watching our video on Mileage Allowance Relief Explained! If you want us to take care of things for you please visit: juniperlynx.com/contact/ If you need help leave a comment.

[@jamesa4566]

Thanks. Very well described. I realised I never properly understood this.

[@lawrencer25]

Welcome back . Hope all's well 🥂👍

[@BhaveshPratap]

Hi. Great summary. Thanks. Can I claim mileage allowance for being a named driver to the car (the car which is not on my name). I am although responsible for wear and tear of the car. My accountant confirms I may be able to. Please advise.

[@JuniperLynx]

Thanks for your comment! If you basically get full access to the car and must pay for your own fuel, insurance, road tax and wear & tear, there wouldn't usually be an issue reclaiming the mileage allowance. It's designed to go towards running costs when using a personal vehicle for business travel. This doesn't specify whether a car can be a lease, hire purchase, pcp, or owned. If you were renting a car specifically for business purposes then this could normally be fully claimed through your company (rental fees and all fuel costs).

[@RichardFanders]

Thank you for all your videos, they're so helpful. I have a questions, if I have funded a small business myself, where would my investment be included in the micro entity balance sheet?

[@JuniperLynx]

Thanks for your comment! If you pay money into the company to get it started (as a loan), the liability would show up in the balance sheet if you still haven't paid yourself back. If you wanted to invest more share capital on the other hand, this would be listed on the balance sheet as an asset. You may want to seek out a legal advisor specialising in company structure when dealing with shares and adding capital to the company.

[@RichardFanders]

@@JuniperLynx thank you.

[@seanwalsh168]

Thanks for the video. So hard to find accessible information on this kind of thing. Even calling HMRC Tax Office seems produce little result. I have car allowance of £343 paid with my wage from my employer. Which is then taxed with my PAYE. I then receive from my employer £0.2962 per mile. I have been trying to figure out if I do a self assessment or P87 I would be eligible for further tax relief to make up on the £0.2962 I get per mile travelled in my car.

[@silverbox-xg4cf]

I'm self employed and travel to buy stock from private sellers and business , so am I allowed to claim these mileage ?

[@laceygriggs6810]

thanks for your great videos - have just gone on to using own car as employee of my limited company. can i pay for fuel from company bank account and deduct it from mileage allowance claimed or do I have to pay for fuel upfront from my personal account.

[@JuniperLynx]

thanks for your comment! You can pay for fuel through the business and treat it as an expense reimbursement. As the mileage allowance will cover more than the cost of fuel, you can repay yourself for the difference once you add the mileage claims :)

[@Theroyski]

Can you choose to claim the mileage allowance instead of keeping track of actual vehicle running expenses as a sole trader?

[@JuniperLynx]

Yes you can! Once you pick either the mileage allowance or actual running costs (with regards to commercial vehicles), you'll need to keep using that method until you no longer use that vehicle (sold or scrapped). Personal vehicles would always use the mileage allowance to separate the personal use element from the business portion. I would first see how much you are spending in fuel and running costs like tax, insurance etc. Once you know this, you can check the mileage allowance calculation to compare if it's any more cost effective.

[@jawadarif5676]

How does it work with a property company, I live on rochdale , I'm buying a property in Blackpool, so I need to travel to view the property and them mite have to travel a few time a year

[@nakkoe8161]

Can I (a director) claim for mileage driving from my office (in my house) to my warehouse? Or does that not count? I am an amazon FBA seller, I go to my warehouse every day, but only there for about 90 mins. Rest of my time is at home. Use my shed for storage as well, and have royal mail pick up at my house. Warehouse is about 30 mins from my house (20 miles one way). Do you think its reasonable for me to claim for the mileage?

[@Facts.Worth_zpt]

Is fines allowable to claim

[@ewelinasagan7399]

Hello, I have a question about full employed person who is claiming mileage allowance for last free tax years. However because claim is over £2500 she has to complete self assessment. How does it work in self assessment does she have to do self assessment just for year 2020/21 and there will be option there to include mileage expense so she can be that money back?

[@narayanpun2880]

Hi, if I have buy to let property in joint name with my wife 50/50, are we both eligible for mileage allowance and 20%tax relief for same property?

[@JuniperLynx]

The property income would be divided evenly, almost like a 50/50 partnership and taxed accordingly. The tax would be based on each person’s remaining allowances and thresholds during the year. It’s usually more beneficial to have jointly owned property because you can use up more of your lower rate tax thresholds if available :)

[@sammytsang2948]

What happens if the company pays you a monthly car allowance instead of providing you with a company car, do you still get 45p per mile?

[@JuniperLynx]

Thanks for your comment! I would need more information to help. For example if its your employer giving you an allowance that is less than 45p per mile, you could add the difference onto your personal tax return (self-assessment) to get some tax relief.

[@user..Aa..Bb..]

Is this not applicable for sole trader

[@JuniperLynx]

The rules are largely the same for sole traders but there are some minor differences. It would be best to contact an accountant that can help with sole trader accounts :)

[@user..Aa..Bb..]

@@JuniperLynx thanks

[@Jeffybonbon]

dont forget if to employees travel in one car its 50p a mile