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Mileage allowance

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Mileage allowance

  • This topic has 3 replies, 2 voices, and was last updated 5 years ago by Tax Tutor.
Viewing 4 posts - 1 through 4 (of 4 total)
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  • November 21, 2019 at 10:13 pm #553340
    maxpopper
    Member
    • Topics: 177
    • Replies: 132
    • ☆☆☆

    During tax year leticia drove 1170 miles in her motor car in respect of funished holiday letting business. She uses authorized mileage rates to calculate her expense deduction. Mileage was for following purpose
    Purchase of property=160 miles
    Running the business on weekly basis=880 miles
    Property repairs=130 miles
    Here while calculating mileage allowance to be included in property income, they have calculated on 930 miles. I just want to ask that why they have ignored 160 miles and why they have included 130 miles?

    November 22, 2019 at 1:21 am #553360
    Tax Tutor
    Member
    • Topics: 2
    • Replies: 3965
    • ☆☆☆☆☆

    The 160 miles was to do with buying the property – we can only deduct against income expenses to do with the running and upkeep of the property

    November 25, 2019 at 5:32 pm #553734
    maxpopper
    Member
    • Topics: 177
    • Replies: 132
    • ☆☆☆

    Sir, in Mileage allowance we calculate it on business miles, correct?
    Now in answer they have calculated on 1010 miles, so in the question 880 miles are for business purpose as mentioned in Qs, so why examiner has not calculated on just 880 miles? Why he has also included 130 miles and why he has rejected 160 miles?

    November 27, 2019 at 10:12 am #553884
    Tax Tutor
    Member
    • Topics: 2
    • Replies: 3965
    • ☆☆☆☆☆

    Read the answer I have already given you!

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