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On the Road: Claiming Mileage through your Limited Company

Last updated on Friday, August 29, 2014

Written by Lauren Ellingham

One of the most popular and utilised expenses that Contractors running Limited Companies claim for is mileage. The basic rule being that mileage can be claimed back when you are travelling to and from a temporary place of work.

Being a Contractor, many places of work are temporary as a result of contract lengths and conditions. 'Temporary' in this context is generally referred to when you are located at a particular site for less than 24 months otherwise known as the '24 month rule'.

Approved Mileage Allowance Payments

Mileage rates are set by the HMRC and are formally known as ‘Approved Mileage Allowance Payments’ (AMAP).

These rates are reviewed by the HMRC occasionally but it is important to note that they do not have a direct correlation with the ongoing cost of fuel rising (as nice as it would be). Current AMAP’s: 45p per mile can be claimed up to 10,000 miles in a tax year. 25p per mile can be claimed after 10,000 miles in a tax year.

These rates are deemed to cover ALL of the running costs of the car. When using a personally owned car you can only claim 45p per mile (25p after 10,000 miles) and must not claim any other expenses.

For example, the cost incurred to have your car serviced or for buying a new tyre for your car cannot be claimed in addition.

For more information about expenses you can claim through your Limited Company you can find our Limited Company Guide to Expenses and Mileage on our Client Web Portal or request a call back.


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