Jump to content

self employed mileage allowance


Paddy Galore!
 Share

Recommended Posts

hi gents, i've started sorting out stuff for my tax return and i'm missing some fuel receipts.

i was wondering if i can just claim a mileage allowance instead, do i need to be a ltd company to do this or can any self employed person do it?

also how much is the allowance considering i've done a shade over 12k this year?

cheers,

paddy.

Link to comment
Share on other sites

I claim an allowance, have never submitted fuel receipts to the accountant.

 

She takes my annual mileage and works out a percentage that I can claim for business.

 

Hope that helps

 

Chris

yes mate, thanks, you mention you claim a percentage though, do you use your motor for private use aswell? could i claim the full amount for a commercial vehicule?

Link to comment
Share on other sites

For employees using their own cars its 45p per mile for the first 10000 miles in the tax year and 25p thereafter. Am sure you could use the same as self employed. You would need some receipts to recover VAT though. I cant remember the element of these payments you can treat as input VAT but a few mins on Google should get you the answer - I think a lot of people use the figures on the AA website

Link to comment
Share on other sites

For business miles I claim 45p a mile up to 10000 miles and 25p thereafter.

 

I do however keep a spreadsheet for every month and account for every mile listing where I went and what for.

 

If you have an HMRC investigation you will be made to show bank statements with withdraws of cash to show that you bought the fuel for the miles. I know another forum member that fell foul of this and had to pay the money back for "over zealous" mileage claims :)

 

 

One of our previous accountants suggested we got bikes, the return is pretty good at 20p a mile!

 

http://www.hmrc.gov.uk/rates/travel.htm

Edited by ME
Link to comment
Share on other sites

For business miles I claim 45p a mile up to 10000 miles and 25p thereafter.

 

I do however keep a spreadsheet for every month and account for every mile listing where I went and what for.

 

If you have an HMRC investigation you will be made to show bank statements with withdraws of cash to show that you bought the fuel for the miles. I know another forum member that fell foul of this and had to pay the money back for "over zealous" mileage claims :)

thanks chap, the mileage is a simple one really matt, it can be checked from mot certs, i don't really go into town in it as it doesn't fit in the car parks, that's what the wifes car is for, do i have to be a ltd company to claim it though?

Link to comment
Share on other sites

yes mate, thanks, you mention you claim a percentage though, do you use your motor for private use aswell? could i claim the full amount for a commercial vehicule?

Private use as well. I let the accountant work it out, but I do keep a spread-sheet of all project mileage in case I ever need it.

Link to comment
Share on other sites

You also need to take into consideration where the mileage is to and from, if you are working In the same place for ( I think ) 2 years you can no longer claim mileage to and from this location, if you get a new contract somewhere else entirely the clock resets.

Link to comment
Share on other sites

You also need to take into consideration where the mileage is to and from, if you are working In the same place for ( I think ) 2 years you can no longer claim mileage to and from this location, if you get a new contract somewhere else entirely the clock resets.

i'm all over the place mate.

Link to comment
Share on other sites

Self employed people can put all their motor expenses through their books, and then add back any private use, by working out business and private miles as a percentage of the miles covered that year.

 

Or, claim their business miles at the HMRC approved rates as mentioned above. Unfortunately, you can't do both. Either way you should keep a log of your business miles in case HMRC want to see them, which they will if you have any type of investigation.

 

Business miles don't include travel from home to your office or other business premises, but if you work from home, business trips start from when you leave home

Link to comment
Share on other sites

Worth remembering that as a director of a limited company you can end up liable for company car tax if the vehicle is in the name of the business and you have use of it for personal miles

 

Edit - I'm not an accountant so speak to one before making any decisions

Edited by LondonLuke
Link to comment
Share on other sites

Worth remembering that as a director of a limited company you can end up liable for company car tax if the vehicle is in the name of the business and you have use of it for personal miles

 

Edit - I'm not an accountant so speak to one before making any decisions

 

yeah i looked at getting a lease car through my co. tbh its a very expensive way of doing things, much better to just declare divs and pay for it personally even if it bumps you over the higher rate threshold

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
 Share

  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...