If you use your own car for business purposes, excluding usual commuting, you should keep a log of miles undertaken so that you can claim tax free expenses back from your company, which in turn gets corporation tax relief on the payments. Currently you can claim 45p per mile for the first 10,000 miles and 25p per mile thereafter.
All that is needed is a diary of your business journeys, but many people still find this a chore. Instead, why not use an App such as iClaimIt or Pocket Mileage HD. As a business owner, all you need to do is download a report at the end of the month and pay your expenses or you could even give your accountant a full year report when you hand over your books. The tax man is more than happy with the evidence that these App’s provide.
If you would like more information on allowable mileage costs you can email us on advice@greenstones.co.uk or call us on 01733 371180.