claiming milege back?

camNolliesMUMMY

I need some help, may seem quite straight forward for some I know.


I am a cleaner and for the tax year of 2014-2015 I have only done 100 miles.


I only set up from November 2014 and my claim is upto the 5th April 2015.


I want to know where I claim this back, I didn't know I needed to keep receipts of petrol and I just purely logged my milege to and from the clients properties. do I add it on my self assessment tax return or is their another online form I need to fill in?




tia

Darksparkle

If you do self assessment then it goes on your self assessment.

Isn't their a box for car, van and travel expenses on the self employed section?

redpete

You can claim it using your self-assessment form but there is also a form P87 from HMRC (you'll need to check that this is valid for self-employment). Note that you will not receive the 45p per mile back - you will reduce your taxable income by this amount and hence be entitled to a refund of the tax that you would have paid on 45p per mile.

There is come guidance here.

Also you do not need to provide fuel receipts - these are used for companies that are registered for VAT to reclaim VAT on this type of expense. You do need to keep a record of the relevant journeys.

camNolliesMUMMY

Yes I have a log of all milege per client so I'm ok there. It just baffled me. It's the first time I'm doing this. It's practice for next year as I now have 10-12 clients ��

Caz3121

the mileage comes off your taxable income in turn meaning you would pay less tax
If however you earn under your personal allowance then it will make no difference as, with or without the mileage, you will still pay no tax

camNolliesMUMMY

So I can't claim any money back for the milege because I don't earn enough is that right? I took in £960 between that period which is only a little income.

sheramber

You don't get money back you reduce your taxable income by the amount so do not pay tax on that amount.

You can read here how to claim for vehicle costs on the link on redpete's post above.

You can keep a note of all your expenses and work out how much you can claim by the proportion of business mileage and private mileage.

Or you can claim a fixed amount according to the business mileage ( which might be easier for you)

The allowance is to cover all running expenses of the vehicle- tax, insurance, mot, repairs, fuel etc.

So for 100 miles you deduct 100 X 45P = £45.00 from your income as vehicle expenses.

So yes you can claim the expenses but if your total income ( any earnings or taxable benefits must also be included on the self assessment return) for the year is below the personal allowance you won't pay tax anyway.

booksurr

perhaps seeing the numbers may help understanding?

let us assume you earned nothing at all between 6th April 2014 and Nov 2014. ie you did not work for anyone else as an employee and you then started your self employed business in Nov 14 and earned £960. Your tax return would look like this:

employment income = £0
self employment income = £960
self employment costs: mileage 100miles x £0.45 = £45.00
self employment profit 960 - 45 = 915

total income for the year less costs before personal allowance = 0+915 = 915
taxable income after personal allowance = 915 - 10,000 = ZERO
you have no tax to pay. The mileage is not an amount you can claim back from HMRC, it simply reduces the profit you made

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now as an example of what would happen when your income is higher let us assume rather than £960 you had earned 15,000 in your cleaning job, the tax would be:
employment income = £0
self employment = £15,000
costs = 100 x £0.45 = £45
self employment profit = 14,955

taxable income 14,955 - 10,000 = 4,955
tax payable 4955 x 20% = £991

Caz3121

booksurr wrote: »

now as an example of what would happen when your income is higher let us assume rather than £960 you had earned 15,000 in your cleaning job, the tax would be:
employment income = £0
self employment = £15,000
costs = 100 x £0.45 = £45
self employment profit = 14,955

taxable income 14,955 - 10,000 = 4,955
tax payable 4955 x 20% = £991

and just to complete the loop
Without the mileage on £15k, you would pay £1,000 tax
so 100 miles @ 45p 'saves' you £9 in tax

camNolliesMUMMY

Thank you all!!!! you've helped me understand it a lot clearer.


I've got more work coming in and this deadline I got a bit baffled! I just want to get it sent off so I can focus on expanding my little business a bit more.


Thank you everyone for taking the time to explain it too me.