Pay Less Tax By Claiming Mileage Allowance Expenses

First examine the facts as they exist in the current financial year 2007-08. The current approved mileage allowances were set five years ago in the financial year 2002-03 and while the current rates in no way reflect the increases in fuel costs in recent years that all businesses including small business. The Inland Revenue is actually considering a revised scale of tax allowances that may even lower the overall amount that can be claimed which will be detrimental to small business.

 

The approved mileage allowance for cars and vans is 40p per mile for the first 10,000 business miles e https://remontibudowa.com/
https://zaskakujacakuchnia.pl/
http://urzadzajzpasja.pl/
https://dlabiznesmena.pl/
https://przewodnikmodowy.pl/and 25p per mile for each business mile over 10,000 miles in each tax year. The approved mileage allowance for motor cycles is 24p per mile for the first 10,000 business miles and 24p per mile for each business mile over 10,000 miles in each tax year. The approved mileage allowance for bicycles is 20p per mile for the first 10,000 business miles and 20p per mile for each business mile over 10,000 miles in each tax year.

Mileage allowances are not necessarily relevant to the business travel costs incurred. The purchase price of a new motor vehicle would not be unusually 100 times the price of a bicycle, plus vehicle maintenance costs, vehicle insurance, licence fees and substantial fuel charges in operating the motor vehicle compared with zero costs for a bicycle. Few small businesses claim tax allowances for bicycle business journeys in their small business accounts.

Amazing that vehicle allowances are only double those claimabl;e if using a bicycle which has no running costs and can be purchased brand new for not much more than it costs for a single tank full of petrol. Not that many people are likely to use a bicycle and cover in excess of 10,000 business miles in a single tax year.

An additional 5p per business mile may also be claimed as a tax free expense if a fellow passenger is also carried on the business journey in the small business accounting records. That fellow passenger must also be on a work journey to enable the mileage allowance to be claimed in the small business accounts

 

Generally there are specific rules on justifying a busi