CIS and business mileage Help

Curly

villabadger wrote: »

Ok, it is a little more complicated than I have lead you to believe to this point. So, as you've asked the question..... the HMRC website says this...
You can deduct the cost of using your car for business purposes. There are two ways of working out how much you can deduct:

• a fixed rate for each mile travelled on business, using our fixed mileage rates
• the actual expenses, worked out using detailed records of business and private mileage to apportion your recorded expenditure

In both cases above, as you are self employed, either option gives a monetary value to the cost of your business for your allowable travel costs. Either way, the value is deducted from your income which effectively reduces your tax bill.

So, thinking about it a bit more.... you should be able to calculate an overall cost using a mileage rate for all of your recorded business miles. This means that you do not actually receive any extra money but save money in the reduced amount of tax you will have to pay. I have only ever used this method as an employee using my own vehicle so I probably haven't given you the full picture for being self employed. An accountant will give you the best way forward for you in particular as we all have slightly different circumstances.

Regarding your CIS status, I hope the company is providing you with a monthly statement of the 20% deductions made from your pay.

thank you this was the sort of lines i was thinking i get cash back frm the 20% i get took off of me i fell a bit more relaxed now. and yes i get a weekly pay slip with the 20% deductions

again thanks for all your help.


PS got no idea were IR35 came from what it is or why it was mensiond

patman99

Just a thought. Would your employer still employ you if you registered as a Limited Company?. At least then, you could claim back not only mileage, but depreciation of your vehicle (80% of the drop in value for cars, 100% for commercials) and tools.

HMRC have really got it in for subbies in the construction industry now. I used to be s/e as a painter 22 years ago and you just gave all the receipts to your Accountant and he would deduct all the costs, depreciation etc. and what was left was what you paid tax on.

Curly

patman99 wrote: »

Just a thought. Would your employer still employ you if you registered as a Limited Company?. At least then, you could claim back not only mileage, but depreciation of your vehicle (80% of the drop in value for cars, 100% for commercials) and tools.

HMRC have really got it in for subbies in the construction industry now. I used to be s/e as a painter 22 years ago and you just gave all the receipts to your Accountant and he would deduct all the costs, depreciation etc. and what was left was what you paid tax on.

no hes an old man at 62 and hes not really got a clue plus the relasionship i have with him is no good the now after me asking for petrol cash, if i get the mileage cash i will be happy , i run about in an old fiesta any ways 12 years old.

its all different now they take the tax off of you then you claim it back