Self Assesment tax rebate question?

bradztheman

For my self assesment, i will be completing it myself. However i have a couple of questions:

i my milage alone accumulates to £7,418.40... is it just a certain percentage of that i can claim? Ive worked it out for the first 10,000 miles being 45p and any milage after 25p.

Also, how much can i earn before paying tax? Is it upto the first £10,5000 earnt?? If so how much tax on that can i claim back? Is it 20% of that amount which automatically gives me £2100 back??

What else can i claim for??

Need help for this ASAP ppl pleease

xylophone

Also, how much can i earn before paying tax? Is it upto the first £10,5000 earn

What is your tax code? Standard personal allowance for the current tax year is £11,000, rising to £11,500 in 17-18.

https://www.gov.uk/income-tax-rates/current-rates-and-allowances

https://www.gov.uk/tax-relief-for-employees/business-mileage-fuel-costs

https://www.gov.uk/expenses-and-benefits-business-travel-mileage/rules-for-tax

bradztheman

How much for tax year 14/15

And also how much for tax year 15/16?

Does it mean i can claim THE FIRST 20 % ??

bradztheman

And how much of the £7,418.40 fuel costs can i claim? All of it? Or a percentage???

bradztheman

Another thing I would like to ask on claiming on car allowances...


I claimed millage only for the year 14/15.


for the year 15/16 I didn't do so many miles, so would like to claim on the cost of the car if possible? I bought it in dec 2012, is it possible to still claim on it, if so, what? I spent £1000 on repairs and £400 on insurance. is it possible to claim the full amount or a percentage?


I'm a painter and decorator. what else can I claim for? I'm being asked to file claims for years 14/15 and 15/16

booksurr

are these your first ever tax returns as you seem rather confused? I am assuming you are self employed rather than being an employee of someone else???

bradztheman wrote: »

For my self assesment, i will be completing it myself. However i have a couple of questions:

i my milage alone accumulates to £7,418.40... is it just a certain percentage of that i can claim? Ive worked it out for the first 10,000 miles being 45p and any milage after 25p.

if you are self employed that means you have to work out how much profit you made running your business.
Your profit is your income - your expenses.

Your expenses include the mileage. By choosing to use the HMRC official rates of 45ppm and 25ppm you will calculate a total cost to deduct from your income. That cost is the figure used in your profit calculation. Now you say you calculate it as £7,718.40, that looks rather odd as it equates to 22,873.6 miles in the year - did you really do that much wholly and exclusively on business travel?

bradztheman wrote: »

Also, how much can i earn before paying tax? Is it upto the first £10,5000 earnt?? If so how much tax on that can i claim back? Is it 20% of that amount which automatically gives me £2100 back??

If you have made a loss rather than a profit then you will not get a tax rebate, assuming you have used the cash basis for your calculation the only thing you can do with a loss is carry it forward to offset against a future profit. If you are using the accruals method for your accounts you have other options for claiming the loss - see here:
http://www.litrg.org.uk/tax-guides/self-employment/working-out-profits-losses-and-capital-allowance/what-if-i-make-loss

the standard personal allowance for 14/15 was £10,000 and for 15/16 £10,600. You work out your profit figure and then deduct the personal allowance from that. If the end result is 0 or negative then you have no taxable income and will not pay tax, obviously if positive you will pay tax (@ 20% up to £32,000 and @ 40% on amounts over that)

bradztheman wrote: »

Another thing I would like to ask on claiming on car allowances...
I claimed millage only for the year 14/15.

for the year 15/16 I didn't do so many miles, so would like to claim on the cost of the car if possible? I bought it in dec 2012, is it possible to still claim on it, if so, what? I spent £1000 on repairs and £400 on insurance. is it possible to claim the full amount or a percentage?

you cannot chop and change . You have claimed mileage in the past so that is what you must do for all subsequent years as long as you keep and use that particular vehicle. You certainly cannot claim the costs of a vehicle you purchased 4 years previously when you have already been claiming the mileage rate. You do understand that the mileage rate covers the "full" costs of the car, ie fuel plus insurance, repairs and a contribution towards its depreciation? If you were therefore to claim for the purchase cost now you would be duplicating your claim as you have already been paid paid for some of it.

bradztheman wrote: »

I'm a painter and decorator. what else can I claim for? I'm being asked to file claims for years 14/15 and 15/16

it sounds like you really need to do some reading before you complete your tax return

HMRC offer online guides for the self employed and I suggest you work your way through the main sections here:
http://www.hmrc.gov.uk/courses/SYOB3/syob_3/html/syob_3_menu.html

in your case you will need to click through some of the detailed links , especially those for expenses. It will be easiest for you if you stick with the "simplified expenses method", as that is what you are using when you claim mileage at the flat rates of 45/25. See here for more details:
https://www.gov.uk/simpler-income-tax-simplified-expenses

bradztheman

booksurr wrote: »

are these your first ever tax returns as you seem rather confused? I am assuming you are self employed rather than being an employee of someone else???if you are self employed that means you have to work out how much profit you made running your business.
Your profit is your income - your expenses.

Your expenses include the mileage. By choosing to use the HMRC official rates of 45ppm and 25ppm you will calculate a total cost to deduct from your income. That cost is the figure used in your profit calculation. Now you say you calculate it as £7,718.40, that looks rather odd as it equates to 22,873.6 miles in the year - did you really do that much wholly and exclusively on business travel?

If you have made a loss rather than a profit then you will not get a tax rebate, assuming you have used the cash basis for your calculation the only thing you can do with a loss is carry it forward to offset against a future profit. If you are using the accruals method for your accounts you have other options for claiming the loss - see here:
http://www.litrg.org.uk/tax-guides/self-employment/working-out-profits-losses-and-capital-allowance/what-if-i-make-loss

the standard personal allowance for 14/15 was £10,000 and for 15/16 £10,600. You work out your profit figure and then deduct the personal allowance from that. If the end result is 0 or negative then you have no taxable income and will not pay tax, obviously if positive you will pay tax (@ 20% up to £32,000 and @ 40% on amounts over that)

you cannot chop and change . You have claimed mileage in the past so that is what you must do for all subsequent years as long as you keep and use that particular vehicle. You certainly cannot claim the costs of a vehicle you purchased 4 years previously when you have already been claiming the mileage rate. You do understand that the mileage rate covers the "full" costs of the car, ie fuel plus insurance, repairs and a contribution towards its depreciation? If you were therefore to claim for the purchase cost now you would be duplicating your claim as you have already been paid paid for some of it.



it sounds like you really need to do some reading before you complete your tax return

HMRC offer online guides for the self employed and I suggest you work your way through the main sections here:
http://www.hmrc.gov.uk/courses/SYOB3/syob_3/html/syob_3_menu.html

in your case you will need to click through some of the detailed links , especially those for expenses. It will be easiest for you if you stick with the "simplified expenses method", as that is what you are using when you claim mileage at the flat rates of 45/25. See here for more details:
https://www.gov.uk/simpler-income-tax-simplified-expenses

I calculated my rebates for the years 14/15 and 15/16 and they are now looking into it as they think the rebate was too high. After moving homes i lost all of my workings out, and forgot how i previously worked it all out hence why i am asking again.

As for the milage, yes, i travelled 96 miles a day to and from home to work (48 miles each way ) for pretty much the whole year, although i have allowed for approx 20 days a month (subtracting weekends).

Looks like they are going to end up owing ME more money looking at how my milage has worked out, last years rebate came to £3500, thats with my 20% personal allowance of £2000 automatically, but i worked out the milage originally to only claim 20% of the £7000 total that ive got, someone told me i could only claim a percentage of that, looks like they were wrong as ive now been told by a couple of people i can claim the whole lot.

In the process of moving i lost my fuel receipts, but i can still prove where i worked and that my car clocked up alot of milage.

booksurr

bradztheman wrote: »

As for the milage, yes, i travelled 96 miles a day to and from home to work (48 miles each way ) for pretty much the whole year, although i have allowed for approx 20 days a month (subtracting weekends).

In the process of moving i lost my fuel receipts, but i can still prove where i worked and that my car clocked up alot of milage.

sorry but you need to step up a gear in terms of your care and attention to your records. If HMRC ever challenge you to prove your expenses claimed them they will want to see a mileage log listing every single business trip you made. Simply stating it was a round sum per day for x days is inadequate. As per the links I gave you, you are expected to keep your records!

bradztheman wrote: »

Looks like they are going to end up owing ME more money looking at how my milage has worked out, last years rebate came to £3500, thats with my 20% personal allowance of £2000 automatically, but i worked out the milage originally to only claim 20% of the £7000 total that ive got, someone told me i could only claim a percentage of that, looks like they were wrong as ive now been told by a couple of people i can claim the whole lot.

there is no such thing as a "20% personal allowance". Either you are badly wording yourself or you have made a complete mess.

as I explained above the self employed calculate their net profit, they do not claim tax relief on their costs incurred. It sounds like you need an accountant to go over your books and check what you are doing, although of course as you have lost your records that may prove rather hard ?

spadoosh

You should speak to an accountant. It looks like youre trying to claim ordinary commuting is business mileage, it is not. You could find yourself getting a very large tax bill if you dont know what youre doing.

I'd also recommend getting a fire proof safe to store any business related documents. Your housekeeping sounds like it could (and is with the overpayment of rebate!) cause you trouble.

Pennywise

bradztheman wrote: »

I'm a painter and decorator. what else can I claim for?

What other wholly business related costs did you incur and more importantly, do you have evidence of how much you spent?

Re your travel, for how long were you travelling to that particular site?

bradztheman

booksurr wrote: »

sorry but you need to step up a gear in terms of your care and attention to your records. If HMRC ever challenge you to prove your expenses claimed them they will want to see a mileage log listing every single business trip you made. Simply stating it was a round sum per day for x days is inadequate. As per the links I gave you, you are expected to keep your records!

there is no such thing as a "20% personal allowance". Either you are badly wording yourself or you have made a complete mess.

as I explained above the self employed calculate their net profit, they do not claim tax relief on their costs incurred. It sounds like you need an accountant to go over your books and check what you are doing, although of course as you have lost your records that may prove rather hard ?

I have kept track, and wrote it out as to how many miles i travelled each day, in my case 96 miles, WHICH WERE ALL BUSINESS MILES. I did this every week for a whole year.

I am self employed, but the company i work for deduct my tax, i get cis remitance slips.

Therefor i CAN claim 20% off the first £10,600 i earnt as i paid tax on ALL of my earnings.