business travel mileage help

Kendowned

Hi I have started a part time job at domino's and want to know if I am eligible to claim back the 45p per mile from HMRC, Dominoes pays me minimum wage £6.50+ 75p per delivery (The 75p per delivery is cash in hand at the end of the shift) but deliveries can be up to 20 miles from the store so 75p does not always cover the costs, I currently work on a zero hour basis for them if this affects anything, Also I have been keeping notes on all the business miles and deliveries I have been making to aid in any claims.

On top of dominoes I have a full time job at aviva which pushes my income to a taxable amount which i assume the mileage allowance would require.

Another quick question is how to tips work are they taxed? do i need to fill in a self assessment form for them?

This is my first post here, sorry if its in the wrong place / lacks information.

redpete

You can claim up to 45p per mile as a tax allowance - not as 45p that HMRC will pay you (so you will actually get 20% of whatever the additional allowance is).

The 75p per trip would be deducted from the 45p per mile.

System

The reduction in tax will help pay for the massive increase in insurance you pay for doing deliveries in your own vehicle. I assume you told your insurers?

Kendowned

Thanks for the replys. So if I understand correctly I work out how much I have received for deliveries and how much I would receive 45p per mile I have done and work the difference, if the money received by Dominoes is more than the 45p allowance I wouldn't get any extra.

!!!!!!, Dominoes added me onto their insurance when i'm doing business miles do I still need to inform my personal insurance?

System

Kendowned wrote: »

Thanks for the replys. !!!!!!, Dominoes added me onto their insurance when i'm doing business miles do i still need to inform my personal insurance?

Are you happy with

We will provide Occasional Business Use insurance for you while you are on duty (third party only)

As long as you are happy to only have third party insurance while working for them. Your insurance isn't going to fork out for your car if it gets bent.

Even though you have TP cover through Dominoes I would think that your insurers would want to know that you are doing something that would increase risk.

densol_2

Kendowned wrote: »

Thanks for the replys. So if I understand correctly I work out how much I have received for deliveries and how much I would receive 45p per mile I have done and work the difference, if the money received by Dominoes is more than the 45p allowance I wouldn't get any extra.

!!!!!!, Dominoes added me onto their insurance when i'm doing business miles do I still need to inform my personal insurance?

Example

Say you did 200 deliveries in the year and covered 1000 miles.

1000 x 45p is £450 - less 200 x 75p paid for each journey £150.

Thus you have net expenses of £300 per year. That is added to your tax coding so you get an additional £300 tax free money. Which at 20% is £60

Hope this helps