is 35p a mile fair for mileage

duffs54

I am self employed and I want to know if 35p a mile for fuel allowance is fair, I want to increase it to 40p but some of my work comes from the NHS through an intermediary, she only allows 35p per mile and keeps 5p for herself as an admin charge. I can increase my private patients so that isn't a problem.

My car is an 02 plate does approx 35-40 miles a gallon, I have business ins etc and full breakdown cover.

I don't want to claim for the car and everything separately I'd rather just claim for the fuel on my tax returns.

Thanks

johnnyreggae

Employees are allowed to receive 45p per mile from their employers without it being taxable so if the Revenue accepts it costs 45p per mile to run a car surely you should have no worries about charging that

Hintza

OP you need to get your accountant to make an adjustment in your tax return to take account of the short fall between 35p and 45p.

Lum

Isn't there a form you can fill in to claim tax relief on the difference, without having to do a full-on tax return which is a complete nightmare to fill in.

Also, bear in mind that it's not just fuel, it's wear&tear on your tyres, servicing, business insurance etc.

A lot of people complain that 45p a mile is too low!

From_St_Neots

Lum wrote: »

Isn't there a form you can fill in to claim tax relief on the difference, without having to do a full-on tax return which is a complete nightmare to fill in.

Also, bear in mind that it's not just fuel, it's wear&tear on your tyres, servicing, business insurance etc.

A lot of people complain that 45p a mile is too low!

Yep P87 I think.

Andy_L

The AA's take on running costs, broken down into the fixed costs (eg tax, insurance) & the per/mile costs (eg fuel & servicing)http://www.theaa.com/motoring_advice/running_costs/index.html

dogshome

If you are self employed you have to fill in a Tax Form each year, and can claim 45p a mile for car use on business, for up to 10,000 miles a year. (It reduces over 10k)
So you just keep a log of work journeys and the total 45p's are deducted from your income before tax - and by the way, the extra cost of your Business Car Insurance is also deductable as is your mobile phone and some other things.
Talk to your accountant

bigjl

23 ppm for staff in my old Trust to come in on O/T.

56ppm if they were moved from station to station and used own car(subject to engine size) and they covered you on Trust Insurance as private Policies consider that business use.

35ppm isn't the worst.

It is only meant to cover your vehicle related costs not give you another income stream.

100 miles would give you £35 and you would maybe use three gallons of fuel which is roughly £20 or so.

Leaving £15 to put towards maintenance.

Business use insurance is not much extra a year on the wife's policy, I think an extra £50.


If you work it out over an annual business mileage of 10000 you would have a budget of £1500 to out towards the running of your vehicle.

Or £3500 before fuel.

Buy a newer more fuel efficient vehicle and you could easily increase the amounting your vehicle maintenance budget.

I believe if the mileage rate is below 40ppm it is not treated as income so is not taxable,
But I'm not sure about that so could be totally wrong.

colino

If your self employed, forget about the rates being offered (though claim them as a matter of course) and speak to your business advisor or accountant about covering properly the costs of this business tool.

duffs54

Thank you for all your help, I will do as advised and let my accountant sort it out, sounds easier to me.