Am I taking the mick here?!

Options
rebecca91
rebecca91 Posts: 40 Forumite
in Cutting tax
Hi all. I'm sorry if this has come up in the past but I can't find anything


After a little advice really.


I strarted tutoring a student last year. Long story short I charge £30 an hour and only do a single lesson week.

The student is 30 miles away from me. (60 mile round trip)
The tax man says I can claim 45p mile.
That's 27 quid I can claim from the £30 an hour I charge (I only do 1 hour tutoring at a time)

Now my car is 60mpg. It no way costs me that much.



So am I right in thinking the tax man will only see I'm earning £3 for that hour work?!
That surly can't be right!

Regards all :D :beer:
«13

Comments

  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
    First Anniversary Name Dropper First Post Combo Breaker
    Options
    If you think that the running costs of a car consist of only the cost of the fuel you need some tutoring yourself.
    Free the dunston one next time too.
  • Dazed_and_confused
    Dazed_and_confused Posts: 6,458 Forumite
    Uniform Washer
    Options
    What other income do you have?
  • rebecca91
    rebecca91 Posts: 40 Forumite
    Options
    Full time employment ontop well above the free tax thresh
  • TheCyclingProgrammer
    TheCyclingProgrammer Posts: 3,702 Forumite
    First Anniversary First Post Photogenic
    Options
    The tax claim is fine, I would more be questioning whether a 60 mile round trip for 1 hour at £30 is a profitable use of my time though.
  • Pennywise
    Pennywise Posts: 13,468 Forumite
    Name Dropper First Post First Anniversary
    Options
    TheCyclingProgrammer wrote: »
    The tax claim is fine, I would more be questioning whether a 60 mile round trip for 1 hour at £30 is a profitable use of my time though.


    If I were a tax inspector, I'd be querying whether the journey was "wholly and exclusively" for business purposes as it doesn't make commercial sense from a cost/time point of view, so my suspicion would be that the journey (or similar) was being done anyway, i.e. to visit friends/relatives or go shopping, in which case, it wouldn't be allowed as a legitimate business expense.
  • rebecca91
    rebecca91 Posts: 40 Forumite
    Options
    It's near my place of work, and some days I did the tutoring after work. However I nearly always cycle to work, and would have cycled on those days if it didn't mean I had to tutor...
    Is that a valid reason? Or shall I claim the millage from work on those days?
  • Pennywise
    Pennywise Posts: 13,468 Forumite
    Name Dropper First Post First Anniversary
    Options
    rebecca91 wrote: »
    It's near my place of work, and some days I did the tutoring after work. However I nearly always cycle to work, and would have cycled on those days if it didn't mean I had to tutor...
    Is that a valid reason? Or shall I claim the millage from work on those days?

    So your only legitimate business miles claim is between work and their home then.
  • rebecca91
    rebecca91 Posts: 40 Forumite
    Options
    Thanks for the reply :)
  • sheramber
    sheramber Posts: 19,136 Forumite
    First Anniversary I've been Money Tipped! First Post Name Dropper
    Options
    You don't get £27.00. You claim tax relief of 27@ your taxable rate e'g 27 x 20%
  • Altarf
    Altarf Posts: 2,916 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    Options
    rebecca91 wrote: »
    I strarted tutoring a student last year. Long story short I charge £30 an hour and only do a single lesson week.

    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
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.3K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608.1K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 248K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards