Question on claiming petrol costs?

[hightower]

The 45p per mile is for using your private vehicle for business use, not for using a company vehicle.
The 45p goes towards paying for fuel, wear and tear, insurance, tax and maintenance.
Where a vehicle is used solely for business use, then all costs incurred should be claimed.

Erm no, you can definitely use the 45p per mile rule for a company vehicle too. It's ideal for sole traders who just want a quick and easy way to work out what they can claim - keep a mileage log book, add it up at end of year, job done.

 

[Octopus]

Erm no, you can definitely use the 45p per mile rule for a company vehicle too. It's ideal for sole traders who just want a quick and easy way to work out what they can claim - keep a mileage log book, add it up at end of year, job done.

Isn't the 45p per mile then it's a lower rate?

 

[HandySparks]

It's either the standard mileage rate or the actual costs, not a combination of both. BTW, if you've already claimed a capital allowance for buying the van, then the mileage rate may not be useable.

Just looked it up: you have to use one method for the whole time you're using the vehicle:
https://www.gov.uk/simpler-income-tax-simplified-expenses/vehicles-

Not read round this recently, so check for yourself.


Why would you not have fuel receipts for a van, like you would for servicing, tyres, etc.? Surely it's just another of the many costs of doing business?

 

[HappyHippyDad]

It's either the standard mileage rate or the actual costs, not a combination of both. BTW, if you've already claimed a capital allowance for buying the van, then the mileage rate may not be useable.

Just looked it up: you have to use one method for the whole time you're using the vehicle:
https://www.gov.uk/simpler-income-tax-simplified-expenses/vehicles-

Not read round this recently, so check for yourself.


Why would you not have fuel receipts for a van, like you would for servicing, tyres, etc.? Surely it's just another of the many costs of doing business?

I guess it would be if you were doing the 'full cost method', but if you were doing the 45p/mile method then all you need is a record of your journey's not your fuel receipts.

 

[hightower]

As HHD has said, I don't bother keeping any receipts for my vehicle - fuel, servicing, repairs etc. They have no use in the 45p a mile method as far as I can see, you just need to keep a log of the business miles you do (which I've made a spreadsheet for if anyone is interested in using)

 

[Deleted member 26818]

The other thing with the 45p rate, is that it is only for the first 10,000 miles, it then drops to 25p.

 

[Richard Burns]

If you are claiming 45p/mile for your fuel and then claiming individual expenses for your car insurance, tax, repairs, servicing etc. then you are majorly ripping off the system.

A car on a low number of miles per year costs about £1.00 per mile (may be out of date now) to actually run if all costs are considered.
Because the tax, MOT, insurance, etc. are fixed annual costs not related to the mileage the more miles you do the cheaper it is per mile to run the vehicle.
If you are doing a lot of miles, I think it is over 20,000 per year, then the simplified expenses is worthwhile, if you are doing only 5,000 miles per year then actual costs should be better for you.

 

[Risteard]

If I remember correctly, once you start claiming using one "method", you can't change until you change your vehicle.

You are 100% correct. You must continue using whichever system you started with for the vehicle.

And it isn't 45p per mile. It is 45p per mile for the first 10,000 miles in the fiscal year and then only 25p per mile thereafter.

 

[Dynamoaccounts]

Erm no, you can definitely use the 45p per mile rule for a company vehicle too. It's ideal for sole traders who just want a quick and easy way to work out what they can claim - keep a mileage log book, add it up at end of year, job done.

Hi there,if it's a company owned vehicle then the rates are reduced.

Company Car Rates

You can change the rates but only when change the vehicle, once set down one path should use it until change. The mileage rates is quick and easy to calculate but it's best to check at the end of the tax year which is best to use for your circumstances, weigh up both methods and use which is best for your circumstances.