Self-Employed Claim Mileage?

Proppo

Hi,

I was just wondering as self employed sub-contractor, the guy who's "contracting" me is happy to pay for the fuel / mileage but I wasn't sure which is best for tax purposes?

Does it matter if I claim the 25p(45p) mileage when I send my paperwork to the accountant, or am I better of just letting him pay the fuel?

Thanks for your help.

jobbingmusician

Mileage is supposed to cover the costs of running your car, not just your fuel, so unless you run a real gas-guzzler, you should be better off claiming 45p per mile.

You haven't given us enough information to make this answer definitive, though!

Proppo

Hi,

It's more for the tax purposes, someone (my dad) put the worry in my head that if I claim Mileage that it makes it like a "company car" and it will mess up my taxes.

I drive a Ford Mondeo 1.8 Duratech so it's fairly economical. Does it affect my tax return if I claim Mileage?

For example, I did 366 miles which cost £62~ but if I was to claim the mileage it would have been £164~ so I would be better off, but I was just unsure how it affects me tax-wise. He's also paying me CIS so deducting 20% tax (this I've done in the past and I'm fairly happy with).

Thanks for your response Jobbingmusician

jobbingmusician

Proppo wrote: »

Hi,

It's more for the tax purposes, someone (my dad) put the worry in my head that if I claim Mileage that it makes it like a "company car" and it will mess up my taxes.

I drive a Ford Mondeo 1.8 Duratech so it's fairly economical. Does it affect my tax return if I claim Mileage?

For example, I did 366 miles which cost £62~ but if I was to claim the mileage it would have been £164~ so I would be better off, but I was just unsure how it affects me tax-wise. He's also paying me CIS so deducting 20% tax (this I've done in the past and I'm fairly happy with).

Thanks for your response Jobbingmusician

No, it won't. See http://www.hmrc.gov.uk/mileage/index.htm and http://www.hmrc.gov.uk/mileage/employee-factsheet.pdf

Proppo

Ok another question, on that fact sheet it says that Journeys To and From a Place Of Work. Which is the majority of what I do I think am I still meant to claim for it? I'm a Landscaper / Multi Skilled Tradesman so I travel to customers houses and do their gardens. Is that classed as a place of work? Basically my journey starts off from my house, I travel to another worker's house and collect him then drive to the sites.

Horace

Proppo travelling from your home to see a client is classed as travelling to a place of work.

Is your vehicle insured for business use?

Proppo

So I'm not entitled to claim the mileage anyway, without it coming into a non tax-free bracket?

I am insured for all use on my car, I made sure to do that as soon as I started using my car for work journeys.

colino

If you are based at home, where you keep your records, tools of the trade etc., every journey away from there is a business journey/cost. Don't get hung up on the 45ppm, that is the rate HMRC disregard as "income" from mileage expenses. Individuals and employees can agree to charge any rate they like, but only over that limit comes into your income.
As you have an accountant, there are lots of ways to treat your vehicle from having one dedicated to the business so that every penny of costs is charged to the business as a running cost, to splitting out personal/business miles as a proportion of running costs. Have a word with them and find out what is most advantageous to you.