Reading Time: 2 minutes
Woman looking out of window at her Suzuki car

Before you start that business trip in your own personal car, do you know the correct business mileage rates you should be claiming?

WOULD you claim 3p for a 100m car journey?

We suspect not; and more to the point, we expect your business car manager or company director would throw out such a penny-pinching claim, too.

If it’s only a 100m, the more efficient method of travel would be walking, let’s face it.

And yet, that’s exactly what former cabinet minister Liam Fox has done – and it’s been paid out of taxpayer’s money, just for good measure.

According to the story which was reported on the BBC Website  from a story on the Sunday People, the 3p was among a further 15 claims that were for business mileage travel below £1 during the 2012-13 tax year, the BBC reports.

MPs, like any other person using their own car for business purposes, can claim for the business mileage.

So are you claiming the right amount?

While the Conservative MP’s office appears to be applying the rules by the rulebook to the last yard and penny for Mr Liam’s business mileage, the current rates for using your own personal car on business are 45p per mile for the first 10,000 miles; thereafter it drops to 25p per mile.

The payments cover all running costs – so you cannot claim for additional fuel costs for business mileage. The payments are called Approved Mileage Allowance Payments – often shortened to AMAPs.

All AMAP business mileage payments are tax-free.

If you use your own private car for business mileage, then you must ensure you have the correct level of business car insurance, too.

More information on business mileage payments

Click here to read Business mileage rates for using a private car

From around the web