Travel Tax Relief

bthomson82

Hi All,

I work self employed at a few different venues each week, these are the same places each week on different days. For example, I always work at place A on a Thursday, place B on a Saturday etc. Now I use my car to trave to and from these places of work, this is about 15 miles there and 15 miles back. Would I be able to claim the 45p per mile on this? If so, can I include the return journey? Also, what would happen if this tax relief was more that I was due in tax payments?

Thanks in advance.

bthomson82

Can anyone help with this? Done a quick calculation and it works out as around £2k based on the miles I've done with around 10k profits earned, will the two cancel out or can hmrc be due me money instead of me paying them?

Nicola_Ed

Hi

If you are self employed then travelling to work and back from home is business travel. You can deduct the cost of this travel from your taxable income - either usiung the approved mileage rates (45p/25p) or a percentage of the actual costs of running costs that relate to business mileage. The former is the simpler - but can only be used if your income is below the VAT registration limit.

jennifernil

You cannot claim tax relief if you have not paid enough tax.

However, if you made an actual loss, this can be carried forward to next year.

Pennywise

bthomson82 wrote: »

Would I be able to claim the 45p per mile on this?

Just in case you don't know how it works, you don't get the 45p back from HMRC. The 45p per mile is an allowable expense which reduces your tax, so if you're paying tax at 20% basic rate, your tax bill is reduced by 20% of the totals of the 45p claims. If the total 45p claims comes to £2k, then your taxable profit is £8k, i.e. sales of £10k less expenses of £2k.