Self-employment- motoring expenses - what can you claimfor?

whatatwit

Can I just check that travelling to and from a fixed place of work/self employment is not allowable.
In that if I have a shop, I can't claim for travelling to the shop.

jimmo

whatatwit wrote: »

Can I just check that travelling to and from a fixed place of work/self employment is not allowable.
In that if I have a shop, I can't claim for travelling to the shop.

Exactly right.

technoflare

I think you can still use the 40p/25p system if you are VAT registered, but it is not claimable in your VAT return.

ioscorpio

veronica46
You could use VT Cashbook, which is a free package http://www.vtsoftware.co.uk/cashbook/index.htm

There are free self employment courses run by HMRC, that are very good, i have just been on Becoming Self Employed and Self Assessment for the Self Employed.

stphnstevey

ioscorpio wrote: »

veronica46
You could use VT Cashbook, which is a free package http://www.vtsoftware.co.uk/cashbook/index.htm

There are free self employment courses run by HMRC, that are very good, i have just been on Becoming Self Employed and Self Assessment for the Self Employed.

Where do you find out about these courses?

ioscorpio

You can apply online on the HMRC website or if you live in the Derbyshire area phone 01332 724410

http://www.hmrc.gov.uk/bst/work.htm

d_bravo

Sorry to confuse matters but I currently log all business miles and am planning to use the AMAP method. However, a high portion of my business travel is in hire vehicles. Does anyone know if I can/should be claiming the cost of hire or do I just record mileage and claim the 40/25p allowance?

stphnstevey

The 40p/25p mile is for using your own car for work - not sure about hired cars, but presume you can claim back the cost someway??

jimmo

Sorry! Have I missed something? What is AMAP?
This is a link to HMRC instructions on mileage allowances which, I hope explains a lot, especially about VAT. http://www.hmrc.gov.uk/manuals/bimmanual/BIM47701.htm
If you extensively use hire cars then you have the same choice as someone who uses their own car. Either use 40ppm/25ppm or make a full claim.
What you definitely cannot do is use 40ppm/25ppm for your own car and claim separately for hire cars.
It’s only an opinion but I would have thought that using hire cars frequently is not exactly cheap and it could be tax efficient for you to use the statutory basis. However, as I said earlier it requires a lot more detailed record keeping.