Tax deductions questions

GoldDigger

I am starting a second job. First job pulls in 26k as employee. Second job is going to work out around 13k but require me to do 210 miles per week in my own personal car self employed.

I was trying to work out tax deductions using the 45p per mile method.I worked out 20% of the 13k is offset with the 45p per mile for the 210 mile a week which works out that the deductions are higher than the tax owed? Is this correct or am i being an idiot?

Dazed_and_confused

You are getting confused.

First things first.

Have you got a new job?

Or are you starting your own business?

GoldDigger

I haven't started the job yet.

I have one job now that I earn 26k as an employee.

This second job is a driving job but self employed. Its delivering food for a Chinese. The guy that does it now does around 210 miles per week and earns 250 in cash in his hand over 3 nights work of 7 hour shifts.

[Deleted User]

GoldDigger wrote: »

I haven't started the job yet.

I have one job now that I earn 26k as an employee.

This second job is a driving job but self employed. Its delivering food for a Chinese. The guy that does it now does around 210 miles per week and earns 250 in cash in his hand over 3 nights work of 7 hour shifts.

You will be earning £13000.
You can CLAIM 210 miles x 52 weeks (or whatever you work). - maximum 10920. 10000 is claimed at 45p, the balance at 25p - maximum claim of 4730. This reduces the taxable amount to £8270.

GoldDigger

thank you. I realise my mistake now.

TadleyBaggie

Don't forget you will also need to get business insurance for the car.

sheramber

TadleyBaggie wrote: »

Don't forget you will also need to get business insurance for the car.

You need specific delivery insurance, not just business insurance.