Car mileage allowance

notahopeinhell

My wife has recently become self employed and uses her car to travel to different venues, usually church halls or schools, where she teaches yoga.

There seems to be some confusion as to whether she can claim the 40p per mile for this purpose or not. She carries various necessary things with her to use during the classes so we assume that she is OK to claim this expense but does anyone know for sure that this is appropriate as we have been told that does not constitute business use?

newbie1980

notahopeinhell wrote: »

My wife has recently become self employed and uses her car to travel to different venues, usually church halls or schools, where she teaches yoga.

There seems to be some confusion as to whether she can claim the 40p per mile for this purpose or not. She carries various necessary things with her to use during the classes so we assume that she is OK to claim this expense but does anyone know for sure that this is appropriate as we have been told that does not constitute business use?

hi i think there is 2 ways u can do it u can do it by mileage as u say or u can just put all receipts in ie petrol, car tax, insurance, mot and repairs
u do what is best for u.
someone may correct me but i think im right

Rolo_Tomasi

I cannot see any reason for not claiming for motor expenses. As the previous poster has said she can either claim for all the running costs of the car (with a reduction for private use) or keep a record of her mileage and claim at the Revenue approved rates of 40ppm for the first 10000 miles and 25ppm for anything over this.

For any business expense the first question to ask yourself is - would I have incurred this cost had I not been self employed? If the only reason you incurred the expense was because you were self employed then it is likely to be allowable.

notahopeinhell

newbie1980 wrote: »

hi i think there is 2 ways u can do it u can do it by mileage as u say or u can just put all receipts in ie petrol, car tax, insurance, mot and repairs
u do what is best for u.
someone may correct me but i think im right

Thanks for your response

notahopeinhell

Rolo_Tomasi wrote: »

I cannot see any reason for not claiming for motor expenses. As the previous poster has said she can either claim for all the running costs of the car (with a reduction for private use) or keep a record of her mileage and claim at the Revenue approved rates of 40ppm for the first 10000 miles and 25ppm for anything over this.

For any business expense the first question to ask yourself is - would I have incurred this cost had I not been self employed? If the only reason you incurred the expense was because you were self employed then it is likely to be allowable.

That's a good question to ask yourself as you say.

Cheers.

AnxiousMum

There is a difference in the two ways of doing it. The company I work for were going to pay a car allowance - paying petrol etc., and then us deduct off our personal use percentage of the petrol. It was brought to their attention by accounts that if they did it that way, it would then become 'income' and therefore affect the tax credits of a couple of the new employees who were single mum's. They then opted for the 40p per mile up to the 10,000 and 22 or 25 p per mile after that. By doing it that way, it is not regarded as income, and I can ignore that little box on the Child Tax Credits forms.

steph123steph

She can claim the mileage allowance of 40p per mile for first 10,000 then 25p per mile thereafter, and can also claim running cost of the vehicle apportioned to personal use, as these are necessary in running her business.

irn_bru

Just to clarify, if you are self employed, is this claimed as a rebate against your tax? i.e. if you earn less than than your tax allowance you can't claim anything?

Rolo_Tomasi

irn_bru wrote: »

Just to clarify, if you are self employed, is this claimed as a rebate against your tax? i.e. if you earn less than than your tax allowance you can't claim anything?

The expense is a deduction against your income - you do not claim anything back.

Also you cannot include the milage allowance and the running costs of the vehicle - it is either one or the other.

Lurchio

Hi, I have a slightly different question but still related to Mileage Allowances.

I live in a small town in North Yorkshire and travel into work in Leeds 4 days a week. However, for one day a week I work out at a clients premises and my boss pays me the 40p mileage allowance.

However, he only pays me for the mileage from the office in Leeds to the client's premises, which is 12 miles each way (24 miles per day I work there).

The thing is, from my home to the client's premises is 32 miles each way, or 64 miles per day.

So, am I allowed to put a personal claim in for the difference of 40 miles per day?

I know that home to work is classed as private mileage so you're not allowed to claim for that... hence why my boss says I can only claim the mileage from the office to the client's premises.

But, on the days I work at the client's, I don't usually go into the office, so surely the whole trip is business use and I can claim for the whole 64 miles?

Either way my boss won't pay me the difference, but if I'm right can I claim for tax relief on the difference myself?

Any help would be appreciated!

Any

Lurchio wrote: »

Hi, I have a slightly different question but still related to Mileage Allowances.

I live in a small town in North Yorkshire and travel into work in Leeds 4 days a week. However, for one day a week I work out at a clients premises and my boss pays me the 40p mileage allowance.

However, he only pays me for the mileage from the office in Leeds to the client's premises, which is 12 miles each way (24 miles per day I work there).

This is the absolutely correct way of doing it per HMRC rules.
If you went to work instead, you would still have to do that journey to work which is private mileage.
HMRC rules say that you can only claim the difference.

It is the same logic as if you went to work as always - which is private mileage, then got sent to the client, & returned to work - business mileage and then go home which is again private mileage.