Self Employed Help Please

mummy86_2

Hi,
I have recently become self employed as I have started a small cleaning business, my question is can I claim my petrol expenses to and from clients and if so do I need to be VAT registered to do so? I'm really confused, any help would be much appreciated. Thanks

HappyMJ

No...you claim mileage expenses at 45p/mile as an expense which reduces your taxable profit. You need to keep a diary.

mummy86_2

Okay, at the moment i'm not earning enough to pay tax as I said its a small business thats just started. So would I still be able to claim mileage expenses at 45p/mile? Do i need to be VAT reg?

heretolearn_2

VAT has nothing to do with income tax.

Travel expenses - yes these are deductable, and will reduce your profit so you pay less tax. If you aren't earning enough to pay tax though, it won't make any difference.

super_sacks

We think If you aren't earning enough to pay tax though, it won't make any difference.

colino

Remember you are running a business now, so record everything and you don't have a "wage", you can take drawings from your profits (not turnover). Mileage is fine while it suits, but as your business grows there are loads of other ways of financing and accounting for your business transport.