What can i claim for in a tax return expenses?

homeriscool

Hi all, im due my first tax return and i am unsure of what i claim back out of my earnings?

Can i claim for -

National insurance?
Business insurance?

How do i go about just taking a fixed mileage as i use my car for business and work? Doing all the paper work for a fixed amount of miles every week? do i really need to keep all my fuel receipts?

Look forward to any advice - thanks in advance-Homer

Wywth

homeriscool wrote: »

Hi all, im due my first tax return and i am unsure of what i claim back out of my earnings?

Can i claim for -

National insurance?
Business insurance?

How do i go about just taking a fixed mileage as i use my car for business and work? Doing all the paper work for a fixed amount of miles every week? do i really need to keep all my fuel receipts?

Look forward to any advice - thanks in advance-Homer

Assuming you are self employed:

NI - no
Business insurance - yes

Fuel receipts - no (unless you are also VAT registered)
You should be claiming for actual business miles - keep a log

homeriscool

Wywth wrote: »

Assuming you are self employed:

NI - no
Business insurance - yes

Fuel receipts - no (unless you are also VAT registered)
You should be claiming for actual business miles - keep a log

If i do the same amount of mile on a 3 week rota - do i still need to keep an exact log of miles?

Brassedoff

No or a longer answer for board requirements if you have ever tried posting just 'no", nope!

homeriscool

Brassedoff wrote: »

No or a longer answer for board requirements if you have ever tried posting just 'no", nope!

so i take it thats a no?

Wywth

homeriscool wrote: »

If i do the same amount of mile on a 3 week rota - do i still need to keep an exact log of miles?

Yes you do.

antrobus

homeriscool wrote: »

Hi all, im due my first tax return and i am unsure of what i claim back out of my earnings?

Any expense that is "incurred wholly and exclusively for purposes of trade".

homeriscool wrote: »

Can i claim for -

National insurance?
Business insurance?

Hence, business insurance, 'yes', because that expense was incurred for the purposes of trade; national insurance, no, because that expense is personal and nothing to do with your trade.

Wywth wrote: »

...Fuel receipts - no (unless you are also VAT registered)....

Non VAT registered businesses can claim back the cost of fuel as a business expense in exactly the same way as VAT registered businesses.

It's probably more straightforward, if you're running a small business and have a motor vehicle that has mixed private and business use, to claim back the x pence per mile for business use, rather than go through the palaver of private use add backs etc.
Maintaining a mileage log would provide supporting evidence for that claim in the event of any future HMRC challenge.

Wywth

antrobus wrote: »

...
Non VAT registered businesses can claim back the cost of fuel as a business expense in exactly the same way as VAT registered businesses.

It's probably more straightforward, if you're running a small business and have a motor vehicle that has mixed private and business use, to claim back the x pence per mile for business use, rather than go through the palaver of private use add backs etc.
Maintaining a mileage log would provide supporting evidence for that claim in the event of any future HMRC challenge.

They can, and can also include a proportion of other vehicle running costs (with receipts) too... but the OP wanted to keep paperwork down, so I was basing my answer on the more starightforward mileage allowance.

homeriscool

Wywth wrote: »

They can, and can also include a proportion of other vehicle running costs (with receipts) too... but the OP wanted to keep paperwork down, so I was basing my answer on the more starightforward mileage allowance.

Hi all - first of thanks for your help!

So just to have a straightforward yes or no,

can i just give mileage in as it will be the same for every week without having to keep a mileage log book, and keeping fuel receipts etc?

yes or no?

Wywth

homeriscool wrote: »

Hi all - first of thanks for your help!

So just to have a straightforward yes or no,

can i just give mileage in as it will be the same for every week without having to keep a mileage log book, and keeping fuel receipts etc?

yes or no?

No, you don't need to give any mileage.

You deduct allowable expenses to reduce your tax liability.

If HMRC wish to check up on your tax return, you will need to be able to justify such expenses were "incurred wholly and exclusively for purposes of trade".

If you do exactly the same miles every week, then your log of miles "incurred wholly and exclusively for purposes of trade" will be quite straightforward.

But are your sure it will be the same every week? What if a customer cancels one week? What happens Christmas/New Year week? Won't you ever have holidays? What if there happens to be roadworlks one day and you need to take a diversion? What if something unexpected happens and you need to make an additional trip somewhere is "wholly and exclusively for purposes of trade"? What's the issue with maintaining a log?

If you decide to not take the simple route I thought you were after and not claim the allowable mileage allowance, yes you can claim based on receipts ... but you will have to be able to prove to HMRC, if asked, the proportion of business miles to total miles so that they can check you are using the correct apportionment.

homeriscool

Wywth wrote: »

No, you don't need to give any mileage.

You deduct allowable expenses to reduce your tax liability.

If HMRC wish to check up on your tax return, you will need to be able to justify such expenses were "incurred wholly and exclusively for purposes of trade".

If you do exactly the same miles every week, then your log of miles "incurred wholly and exclusively for purposes of trade" will be quite straightforward.

But are your sure it will be the same every week? What if a customer cancels one week? What happens Christmas/New Year week? Won't you ever have holidays? What if there happens to be roadworlks one day and you need to take a diversion? What if something unexpected happens and you need to make an additional trip somewhere is "wholly and exclusively for purposes of trade"? What's the issue with maintaining a log?

If you decide to not take the simple route I thought you were after and not claim the allowable mileage allowance, yes you can claim based on receipts ... but you will have to be able to prove to HMRC, if asked, the proportion of business miles to total miles so that they can check you are using the correct apportionment.

Hi thanks for your help again

My business is a window cleaning round so i just do the same round every week/month so miles are the same, customers do go on holiday or cancel, but i still have to go next door anyway....

so i should stick with logging miles and claim back 45p per mile then....