Over-claiming travel expenses...

Ginger_Winner

I work as a consultant on a self employed basis. My work account for 80% of my travel, so I claim 80% of all fuel receipts as a travel expense in my self assessment tax return. The complication is that one of the companies I work for have a policy of paying for travel incurred whilst working for them at a rate of 40p per mile.

So if I was to travel 1,000 miles for this company they pay me £400 costs. My question is how do I account for this on my tax return? I am worried that I could end up over claiming by taking the £400 payment from the company having also claimed 80% of the fuel cost through my fuel receipts.

spendingmad

I have this also - want I do (not sure if its right!) is add the company expenses payment say £400 to my top line and then claim your %age for all travel expensives. (80%)

Hope that makes sense!

BTW - Have you done the calculation to make sure you are claiming the best way eg 80% of total or 40p per mile?

chrismac1

As a self-employed person your 40 pence should form part of your invoiced sales and hence declared business profits, so net nil liability if you are claiming 40 pence per mile for business travel. it may not quite net out if you are claiming mileage on an actuals basis, but is still fine as your being paid per your contract, and claiming expenses in line with tax rules.

Ginger_Winner

spendingmad wrote: »

I have this also - want I do (not sure if its right!) is add the company expenses payment say £400 to my top line and then claim your %age for all travel expensives. (80%)

Hope that makes sense!

BTW - Have you done the calculation to make sure you are claiming the best way eg 80% of total or 40p per mile?

thanks - I have done the 80% calculation and it works out more or less the same...