Can Business mileage be claimed ? | AccountingWEB

Can Business mileage be claimed ?

I have a client who is a Director of a Ltd Company and lives 100 miles away from the office and so commutes to work on a Monday, stays locally for the week and then travels back home on a Friday night.

I have advised that this travel is travel to and from work albeit a long way and as such cannot be claimed. He is adamant that he can claim it so i just wanted to check whether i was missing anything or whether my position is correct.


Thank you 


Short description: 
Can business mileage be claimed for travelling to and from work at the start and end of the week when you live 100 miles away from the office?
Exclude from most read etc: 


I usually

The Innkeeper |

get the client to agree with my view by suggesting that for £45 (100 x 45p - assuming the car is not a company car)  and that the actual cash value to him is £9 (£45 x 20%) .This would make a total of £468 actual cash in his pocket over a year. Explain the potential grief that HMRC could inflict on him for this sum . Is it worth it ,of course not.

Steve Kesby's picture

What do you mean...

Steve Kesby |

... by "the office".

Company owner-managers have a tendency to locate their offices near to where they live. Is it a contractor attending a client's office 100 miles away? If so, how long is the contract expected to last?

If not, I agree that it's non-allowable. Suggest he keeps an office closer to home. By non-allowable, I mean that if the company chooses to pay it, it's deductible from the company's profits chargeable to Corporation Tax, but taxable (and NICable) on the director as pay, meaning that it is probably better for the company not to pay it.

@ The Innkeeper - It's 100 miles each way so it's approaching £936! :) I expect the cost that the client is most concerned with though is the accommodation during the week.

Incidentally, the tax relief (if it's allowable) is 20% in the company plus whatever the directors marginal rate of tax is, which might be 40% or even 45%. So 200 miles a week might be worth nearly £3,000.


ver1tate |
200 miles per week at .45 per mile £90.00
normal weeks worked in a year allowing for holidays 49 £4,410.00

Seems that holiday weeks are being forgotten, and calculations made on a 52 week year.

Steve Kesby's picture

Yes, but...

Steve Kesby |

... if he takes his holidays mid-week he has to get home before his holiday and then back to work at the end again.

So you end up with 55  x 200 miles = 11,000; 10,000 x 45p and 1,000 x 25p = £4,750. :)

Yes, but...

ver1tate |

Do you take your holidays mid week. As captain Mainwaring said ' realms------'

What if . . . ?

fawltybasil2575 |

. . . . . . . . .  and what if, three times in the year, he calls out the RAC, and their transporter brings his car back home ( having broken down 35 to 87 miles from home) ?   Can he claim the 45p (or 25p) then , given that no motoring costs can be realistically considered to have been  incurred, when his car is on the transporter  ?------ and if in fact, the RAC use a pickup instead of a transporter to bring him home, can he then claim the 45p, since there will have been tyre wear ?    

And in any event, why should Steve "199 ways to boil an egg" K allow himself to be hoodwinked into believing that the director only takes three weeks holiday in the year ?  

These are just some of the burning questions which exercise the minds only of the saddos who elect to forgo a Friday night on the tiles in favour of the addiction that is AWEB.

Regards from Basil.


What if

ver1tate |

fawltybasil2575 PM       | Sat, 30/11/2013 - 01:30


Were you just going to bed after watching yet another repeat on TV? Or were you out on the tiles, and just HAD to look up AWEB at that time in the morning?