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
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.