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Employees are allowed to claim an authorised mileage rate for business journeys and a higher rate is paid for the first 10,000 miles a year
My query concerns the use of the 45p and 25p authorised mileage rates; in particular the allocation of the first 10 000 miles where there are two or more sources of income.
The Employment Income Manual at EIM31280 states that where there are two unassociated employers each employment has a 10 000 mile limit. The Business Income Manual at BIM47701 allows self-employed persons to use these rates where the turnover is below the VAT threshold.
What is not clear to me is what happens in the following scenarios all involving properly recorded business mileage using the person’s own car:
- An employment and a concurrent separate self-employment.
- A directorship in a close company (with a 50/50 shareholding held with their spouse) and a concurrent separate self-employment.
- A self-employment where half-way through the tax year the...
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