OnTax Dunfermline Accountants Consider:

How To Maximise A Mileage Claim

Mileage Claims Are Still Tax Deductible.
Make Sure You Claim As Much As You Are Entitled To.

What About Mileage Allowances?

We Are Dunfermline Accountants Who Love To Answer Your Questions!

Dunfermline Accountants, OnTax, have been busy cooking up another legal tax dodge! This tax dodge tip is one that is so obvious to OnTax Dunfermline Accountants we cant believe it has not been fully exploited by the masses! We have been researching AMAPS or "Approved Mileage Allowance Payments Scheme" within HMRC's tax legislation. You might know this in 2015 as "45p a mile tax free" but for the benefit of all I will explain.

We can confirm that contractors are allowed to claim 45p per mile (for the first 10,000 miles per tax year) for any business car journey undertaken. Be aware that the taxman has very strict rules on what is classed as a "business journey". But, the taxman also extends this scheme to the self employed also. This means that instead of the contractors full charge being liable to tax, only part of it now is, because part of his earnings are now classed as mileage.

Where Is The Trap?

We would not be doing our job if we did not advise you of a trap though! If you have a self employed contractor turning over less than the current vat registration limit then they can be paid via AMAPS. But anyone turning over more than that cannot use this scheme.

So you pay them the allowance per mile and its tax free and also National Insurance free. Of course, their charge to you is correspondingly reduced.

Every Business Mile Is A Chance To Get Tax Relief

Where Is The Saving?

The saving occurs when a contractor works mainly for you and has an older vehicle. Being low in value, the AMAPS rates can be higher than the running costs and that is where he gains

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