Am I taking the mick here?!

rebecca91

Hi all. I'm sorry if this has come up in the past but I can't find anything


After a little advice really.


I strarted tutoring a student last year. Long story short I charge £30 an hour and only do a single lesson week.

The student is 30 miles away from me. (60 mile round trip)
The tax man says I can claim 45p mile.
That's 27 quid I can claim from the £30 an hour I charge (I only do 1 hour tutoring at a time)

Now my car is 60mpg. It no way costs me that much.



So am I right in thinking the tax man will only see I'm earning £3 for that hour work?!
That surly can't be right!

Regards all :beer:

kidmugsy

If you think that the running costs of a car consist of only the cost of the fuel you need some tutoring yourself.

Dazed_and_confused

What other income do you have?

rebecca91

Full time employment ontop well above the free tax thresh

TheCyclingProgrammer

The tax claim is fine, I would more be questioning whether a 60 mile round trip for 1 hour at £30 is a profitable use of my time though.

Pennywise

TheCyclingProgrammer wrote: »

The tax claim is fine, I would more be questioning whether a 60 mile round trip for 1 hour at £30 is a profitable use of my time though.

If I were a tax inspector, I'd be querying whether the journey was "wholly and exclusively" for business purposes as it doesn't make commercial sense from a cost/time point of view, so my suspicion would be that the journey (or similar) was being done anyway, i.e. to visit friends/relatives or go shopping, in which case, it wouldn't be allowed as a legitimate business expense.

rebecca91

It's near my place of work, and some days I did the tutoring after work. However I nearly always cycle to work, and would have cycled on those days if it didn't mean I had to tutor...
Is that a valid reason? Or shall I claim the millage from work on those days?

Pennywise

rebecca91 wrote: »

It's near my place of work, and some days I did the tutoring after work. However I nearly always cycle to work, and would have cycled on those days if it didn't mean I had to tutor...
Is that a valid reason? Or shall I claim the millage from work on those days?

So your only legitimate business miles claim is between work and their home then.

rebecca91

Thanks for the reply

sheramber

You don't get £27.00. You claim tax relief of 27@ your taxable rate e'g 27 x 20%

Altarf

rebecca91 wrote: »

I strarted tutoring a student last year. Long story short I charge £30 an hour and only do a single lesson week.

Wouldn't this fall under the new £1000 trading allowance so tax wouldn't be due on the tutor income anyway.

https://www.gov.uk/government/publications/income-tax-new-tax-allowance-for-property-and-trading-income/income-tax-new-tax-allowance-for-property-and-trading-income