mileage

C

CJPC

Registered User
Messages
34
Hey,

Getting stick about mileage rates in work - again?

Company wants to cut them for second time this year. (Voluntary pay cuts already been implemented among other things).

Anyway my question is about the cost of travel expenses to companies.

What portion of mileage can they write off against tax? I thought a lot, but I could be completely wrong.
 
Companies pay tax on profits.
Mileage is an expense so it is deducted before profits are calculated.
For example, a company can that just has reps on the road may find that mileage accounts for 15% of their turnover. If profits were 10% it would be a bit mad to pay tax on the 15%, yes?
 
Of course.

Do they have any clawback on the expenses paid to employees? or is it simply just not paying tax on it.
 
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