diesel expenses self assesment

tuggers4

The company that I work for gives me 40 pence per mile. I add this to my invoice for my normal days work.
Do I claim petrol back as an expence on my self assesment tax return.

please help as its my first time doing SA and am confused as to what to do with this issue.

ceeforcat

The first question that I would ask is - are you self employed?

How, how often and on what basis do they pay you?

tuggers4

yes Im self employed, the company generally pays me every two months with a cheque

fengirl_2

You include the travel allowance with your turnover and then include the travel costs in your business expenses.

ceeforcat

So - you invoice the company on the basis of each job completed - not per hour and you do not have to be there at set hours. They do not supply you with any tools or office. You have a separate business bank account and headed notepaper. If so - I just do not understand the mileage concept - surely you should be invoicing the company on the basis of the mileage and other motor expenses incurred? I am just trying to get the whole picture here.

tuggers4

ceeforcat - i DO invoice the company based on mileage, they pay me a flat rate per day, plus whatever mileage i have accrued on that day. they don;t supply me with anything, i have no business bank account - i work for them on a freelance basis.

so, even though the company has actually paid for my travel expences, and i include this in my invoice, do i still claim for this mileage as expences on my SA?

ceeforcat

As fengirl has said - include all of the income you have received including mileage payments and include the expense in your total claim for motor expenses.

tuggers4

O.K so how much is each mile worth when claiming as an expense.

ceeforcat

O.K. – The way I have always used is to:

Add up all of your motor expenses including diesel, insurance, tax, repairs etc.

Calculate to the best of your ability what element of this is private – there is no set rule here – reasonableness is more important.

Claim all of your motor expenses and then add back the private element. You will need to do likewise with capital allowances to account for the depreciation on your vehicle.

Others on here prefer to use a rate per mile basis but I have never been a fan of this method and will leave it to others to elaborate.

tuggers4

Im not sure what you mean by add back the private element. I have an exact total of miles that I have used on all the days I have worked. I don't keep a total of the miles I do for my own use. I just need a price per mile.