Am I taking the mick here?!

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  • MichelleUK
    MichelleUK Posts: 427 Forumite
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    Altarf wrote: »
    Wouldn't this fall under the new £1000 trading allowance so tax wouldn't be due on the tutor income anyway.

    https://www.gov.uk/government/publications/income-tax-new-tax-allowance-for-property-and-trading-income/income-tax-new-tax-allowance-for-property-and-trading-income

    That has been dropped for the time being:

    http://www.moneysavingexpert.com/news/protect/2017/04/government-drops-1000-tax-breaks-for-online-sellers-and-room-renters-for-now
  • rebecca91
    rebecca91 Posts: 40 Forumite
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    Incorrect -

    "Mileage allowance – or 'simplified expenses' rules. This method will allow most self-employed workers to claim 45p per business mile travelled in a car or van (45p for the first 10,000 miles and 25p thereafter)."
  • TheCyclingProgrammer
    TheCyclingProgrammer Posts: 3,702 Forumite
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    rebecca91 wrote: »
    Incorrect -

    "Mileage allowance – or 'simplified expenses' rules. This method will allow most self-employed workers to claim 45p per business mile travelled in a car or van (45p for the first 10,000 miles and 25p thereafter)."

    What are you saying is incorrect?
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
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    sheramber wrote: »
    You don't get £27.00. You claim tax relief of 27@ your taxable rate e'g 27 x 20%

    The op is claiming self-employment and would be claiming the £27 against the income of £30 leaving £3 taxable. That is if it was legitimate mileage which is very doubtful.
  • toph
    toph Posts: 79 Forumite
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    Phone the tax helpline, explain your story and see what they say.

    Personally I'd claim it and let the tax office correct me. Plenty of businesses out there loose money at first before establishing themselves, to me it looks like your just starting out tutoring and once you've gained confidence you may do more. Mileage expenses are a legitimate expense you wouldn't be claiming if you weren't tutoring. I've worked with plenty of people who "travelled for work" and visited family etc, home office even had different over night rates for those that stayed with family instead of a hotel, mileage was still claimed and reimbursed.
  • 00ec25
    00ec25 Posts: 9,123 Forumite
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    toph wrote: »
    Phone the tax helpline, explain your story and see what they say.

    Personally I'd claim it and let the tax office correct me. Plenty of businesses out there loose money at first before establishing themselves, to me it looks like your just starting out tutoring and once you've gained confidence you may do more. Mileage expenses are a legitimate expense you wouldn't be claiming if you weren't tutoring. I've worked with plenty of people who "travelled for work" and visited family etc, home office even had different over night rates for those that stayed with family instead of a hotel, mileage was still claimed and reimbursed.
    what you put on your tax return and what will stand up to an investigation if one ever happens are 2 entirely different things.

    post #6 from pennywise is the correct answer in this thread
  • Geoff1963
    Geoff1963 Posts: 1,088 Forumite
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    So your only legitimate business miles claim is between work and their home then.
    I think it might even be less.
    If Home-Work is 30 miles, and Work-Tutoring is say 5 miles, Tutoring-Home could be anywhere from 25 to 35 miles. For tax purposes, it is the extra that counts.
    If the Tutoring is on the OPs normal route Home from Work ( even if it is 15 miles from each ), they might not be able to claim anything at all.
  • toph
    toph Posts: 79 Forumite
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    the OP has said they would usually cycle to work, but would drive only if tutoring so would be out of pocket by taking on the tutoring as they incur expenses its suggested they cant claim for.
    The journey is only made by car as a result of the tutoring job. Is that not justification for claiming?
  • 00ec25
    00ec25 Posts: 9,123 Forumite
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    toph wrote: »
    The journey is only made by car as a result of the tutoring job. Is that not justification for claiming?
    no, that is personal choice
  • Geoff1963
    Geoff1963 Posts: 1,088 Forumite
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    I can't afford a week of holiday in the Bahamas, but my mother has contracted me to send her six postcards from there, on consecutive days. I'm only being paid £1 for the job, so by the time I include the expenses of flights, accommodation, and meals, that will be a big loss. Can I offset that loss against my normal income, and hence pay less tax ?
    :think:
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