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Keeping up to speed

10 December 2013 / Andrew Rainford
Issue: 4432 / Categories: Comment & Analysis , Employees , Income Tax , Investigations

Lack of formal records is not always fatal to a claim for tax-free mileage allowance

KEY POINTS

  • A company van and privately-owned vehicle were both used for business purposes.
  • HMRC argued that a lack of formal records resulted in a benefit and disallowed mileage claims.
  • Considering the impact of the Industrial Doors and Gilbert v Helmsley cases.
  • HMRC guidance is not necessarily a statutory requirement.
  • Should fee protection insurance be offered to clients by all advisers?

Mr Grub is a very hands-on owner and director of a successful limited company which operates several takeaway food shops. These are situated in towns that have a high tourist footfall but they are separated by miles of B-class country roads.

The company owns several commercial vehicles most notably a pick-up truck which is used to transport food and machinery between the shops and the company’s workshop...

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