Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • rebecca91
    • By rebecca91 13th Jun 17, 10:31 PM
    • 40Posts
    • 31Thanks
    rebecca91
    Am I taking the mick here?!
    • #1
    • 13th Jun 17, 10:31 PM
    Am I taking the mick here?! 13th Jun 17 at 10:31 PM
    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
Page 1
    • kidmugsy
    • By kidmugsy 13th Jun 17, 10:38 PM
    • 9,670 Posts
    • 6,427 Thanks
    kidmugsy
    • #2
    • 13th Jun 17, 10:38 PM
    • #2
    • 13th Jun 17, 10:38 PM
    If you think that the running costs of a car consist of only the cost of the fuel you need some tutoring yourself.
    • Dazed and confused
    • By Dazed and confused 13th Jun 17, 10:38 PM
    • 1,768 Posts
    • 769 Thanks
    Dazed and confused
    • #3
    • 13th Jun 17, 10:38 PM
    • #3
    • 13th Jun 17, 10:38 PM
    What other income do you have?
    • rebecca91
    • By rebecca91 13th Jun 17, 10:54 PM
    • 40 Posts
    • 31 Thanks
    rebecca91
    • #4
    • 13th Jun 17, 10:54 PM
    • #4
    • 13th Jun 17, 10:54 PM
    Full time employment ontop well above the free tax thresh
    • TheCyclingProgrammer
    • By TheCyclingProgrammer 13th Jun 17, 11:25 PM
    • 2,755 Posts
    • 1,546 Thanks
    TheCyclingProgrammer
    • #5
    • 13th Jun 17, 11:25 PM
    • #5
    • 13th Jun 17, 11:25 PM
    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
    • By Pennywise 14th Jun 17, 10:18 AM
    • 9,197 Posts
    • 16,746 Thanks
    Pennywise
    • #6
    • 14th Jun 17, 10:18 AM
    • #6
    • 14th Jun 17, 10:18 AM
    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.
    Originally posted by TheCyclingProgrammer

    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
    • By rebecca91 14th Jun 17, 11:18 AM
    • 40 Posts
    • 31 Thanks
    rebecca91
    • #7
    • 14th Jun 17, 11:18 AM
    • #7
    • 14th Jun 17, 11:18 AM
    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
    • By Pennywise 14th Jun 17, 11:20 AM
    • 9,197 Posts
    • 16,746 Thanks
    Pennywise
    • #8
    • 14th Jun 17, 11:20 AM
    • #8
    • 14th Jun 17, 11:20 AM
    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?
    Originally posted by rebecca91
    So your only legitimate business miles claim is between work and their home then.
    • rebecca91
    • By rebecca91 14th Jun 17, 11:25 AM
    • 40 Posts
    • 31 Thanks
    rebecca91
    • #9
    • 14th Jun 17, 11:25 AM
    • #9
    • 14th Jun 17, 11:25 AM
    Thanks for the reply
    • sheramber
    • By sheramber 14th Jun 17, 12:34 PM
    • 3,753 Posts
    • 2,764 Thanks
    sheramber
    You don't get £27.00. You claim tax relief of 27@ your taxable rate e'g 27 x 20%
    • Altarf
    • By Altarf 18th Jun 17, 10:03 AM
    • 2,843 Posts
    • 1,677 Thanks
    Altarf
    I strarted tutoring a student last year. Long story short I charge £30 an hour and only do a single lesson week.
    Originally posted by rebecca91
    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
    • MichelleUK
    • By MichelleUK 18th Jun 17, 10:23 AM
    • 302 Posts
    • 179 Thanks
    MichelleUK
    Originally posted by Altarf
    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
    • By rebecca91 17th Aug 17, 3:57 PM
    • 40 Posts
    • 31 Thanks
    rebecca91
    Nope
    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
    • By TheCyclingProgrammer 17th Aug 17, 4:09 PM
    • 2,755 Posts
    • 1,546 Thanks
    TheCyclingProgrammer
    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)."
    Originally posted by rebecca91
    What are you saying is incorrect?
    • purdyoaten2
    • By purdyoaten2 17th Aug 17, 6:48 PM
    • 695 Posts
    • 307 Thanks
    purdyoaten2
    You don't get £27.00. You claim tax relief of 27@ your taxable rate e'g 27 x 20%
    Originally posted by sheramber
    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.
    purdyoaten lost his password
    • toph
    • By toph 20th Aug 17, 9:57 AM
    • 41 Posts
    • 15 Thanks
    toph
    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
    • By 00ec25 20th Aug 17, 12:09 PM
    • 5,037 Posts
    • 4,381 Thanks
    00ec25
    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.
    Originally posted by toph
    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
    • By Geoff1963 20th Aug 17, 3:37 PM
    • 1,057 Posts
    • 669 Thanks
    Geoff1963
    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
    • By toph 20th Aug 17, 4:20 PM
    • 41 Posts
    • 15 Thanks
    toph
    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
    • By 00ec25 20th Aug 17, 5:46 PM
    • 5,037 Posts
    • 4,381 Thanks
    00ec25
    The journey is only made by car as a result of the tutoring job. Is that not justification for claiming?
    Originally posted by toph
    no, that is personal choice
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

50Posts Today

3,537Users online

Martin's Twitter
  • RT @LordsEconCom: On Tuesday Martin Lewis, Hannah Morrish & Shakira Martin gave evidence to the Cttee. Read the full transcript here: https?

  • Ta ta for now. Half term's starting, so I'm exchanging my MoneySavingExpert hat for one that says Daddy in big letters. See you in a week.

  • RT @thismorning: Can @MartinSLewis' deals save YOU cash? ???? https://t.co/igbHCwzeiN

  • Follow Martin