I charge my personal company 45p per mile for business mileage. I have just traded in my car though and bought a new one. Does my total mileage continue from the old vehicle- or does it start again?

1st August 2012

Business mileage in a car or van, is payable at 45p per mile for up to 10,000 miles (thereafter at 25p per mile).  The 10,000 mile limit is applicable per employment; per tax year.

For mileage purposes, vehicles are split like so:

  • Cars and vans
  • Motor cycles
  • Cycles

Business mileage for the same ‘kind’ of vehicle is merged as if it related to a single vehicle. So in answer to your question, your mileage is effectively cumulative because the ‘kind’ of vehicle has not changed- both vehicles were cars.

If you would like to discuss this further, please do not hesitate to contact your local TaxAssist Accountant.

By Jo Nockels

Disclaimer: The information provided is based on current guidance (at date of publication) from HMRC and may be subject to change. Any advice shared here is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this information, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

Call us today to make an appointment at your local office

0800 0523 555

Or submit an enquiry