mileage claims for Self Employed

john3:16

Just wanting to check as I'm a bit of a newbie with all this tax stuff:

I'm self employed with my own limited company. I have read I can claim 40p per mile up to 10,000 business miles, then 25p per business mile thereafter. So if I did exactly 10,000 business miles (for example) can I therefore take £4000 out of my earnings knowing I won't have to pay tax on it?

(I am using my own private car and not travelling to the same client each time).

Thanks
Gerry

LittleVoice

Yes. As long as you are not also claiming a proportion of your car insurance and maintenance costs nor putting through petrol bills.

Well, actually it's not your earnings, it's the expenses incurred solely on behalf of the business.

mikewebs

Remember you must be prepared to provide evidence of your 'exactly 10,000 miles' for business purposes. HMRC can and do query things like this because many people see it as a way to get free money - use your allowance by all means but don't get caught trying to catch them out!

john3:16

mikewebs wrote: »

Remember you must be prepared to provide evidence of your 'exactly 10,000 miles' for business purposes. HMRC can and do query things like this because many people see it as a way to get free money - use your allowance by all means but don't get caught trying to catch them out!

I don't do 'exactly 10,000' miles it was just an example for illustration on the limit of the 40p level.

It's going to be more like 15,000-18,000 business miles and I have sufficient evidence including mileage log, mileage recorded at service, contracts with clients who are x miles from where I live, expense receipts from away from home etc...

Gerry