Mileage question

sugarspunsister

Hello,

I'm newly self-employed (working from home) and each job I do involves travelling to a client's home.

My question is:

My mother 'gifted' me a car a few years ago which I now use for work, however she has also always paid for its upkeep (services, m.o.t, tax & insurance), I'm spoiled I know

I did ask an accountant about where I stand with claiming against my fuel costs, but I'm pretty sure she didn't understand the situation as she advised me to simply use the 40p/mile scenario. I can't help thinking that this can't be right... considering I'm not paying for the wear and tear involved, simply the fuel.

Could some kind soul let me know what I should be doing in this situation?

Thanks,

Sugarspunsister

goodscams

40p per mile is fine, it doesn't matter who pays for the upkeep of the vehicle. As long as the vehicle is yours! The tax saving is better in your pocket rather than Gordon Browns!

Cheers
:beer:

sugarspunsister

Thanks for your reply

So I wouldn't be required to produce evidence of service history receipts etc...

Thanks

Sugarspunsister

stevo84_2

nope, but you must keep a record of what mileage you have done for work related activities.

Make a note of DATE, BRIEF DESCRIPTION OF VISIT, MILEAGE

remember 40p per mile is not 40p cash, it simply saves you paying tax on 40p of your earnings per mile thus if for example you pay tax at approx 20% you would be saving 8p on your tax bill per mile you rack up.

Stevo

Murtle

You may need to keep petrol receipts to cover some of the mileage you do. Check with your accountant if the recent changes affect you. They do sound like they know what they are saying!!!

sugarspunsister

Thanks for the heads up

I have been keeping a mileage book and all fuel receipts, so I'll just continue as I'm doing.

Thanks again for your help, it's really appreciated

Sugarspunsister

Murtle

Well done, sounds like you have it all in order then sugarspunsister.

Keep going as you are and you should be fine!

x

Sim_2

While on the topic.

I have over the last year I started to drive a few miles per week for my job. I make a claim once a month and get paid 43p/mile by my employer, I get at note back with the cheque and am told to keep for my tax return - what exactly do I have to declare to the tax man? I am only claiming £40-70 a month, I pay 40% tax.

Sim

stevo84_2

sounds lika all in order then sugarspunsister!

just a quickie. im employed and use my vehicle for work. i get 30p a mile. do i need to keep receipts or just the records? no one mentioned any changes at my place.

stevo

astonsmummy

i am starting work on may 1st and have been told i can claim 40p per mile, i only work 16 hrs a week and claim WTC & CTC, would i be able to claim and when and how do u do it?
also, r there other things i can claim for? x

stevo84_2

astonsmummy wrote:

i am starting work on may 1st and have been told i can claim 40p per mile, i only work 16 hrs a week and claim WTC & CTC, would i be able to claim and when and how do u do it?
also, r there other things i can claim for? x

You can receive 40p per mile (cash) from your employer (up to 10,000 miles per annum) without paying tax. If your employer pays you less you can claim tax relief on the difference. I.e. if your employer pays you 20p per mine you can claim tax relief on the other 20p. This does not mean the inland revenue gives you 20p cash, it means you do not need to pay tax on that 20p. If you do not get paid mileage by your employer at all you can claim tax relief on the whole 40p (depending on which tax bracket you are in this will be worth about 10p in cash value).

Hope this helps! :rolleyes:

Stevo