How does mileage allowance affect tax?
in Cutting Tax
6 replies 111 views
I'm looking to start a self-employed role that involves a lot of driving. I've read that I need to do self-assessment and can claim 45p a mile for the first 10k miles and then 25p a mile after that, but how does that actually affect my tax?
Can I lease a car with a business rate and not pay VAT on it? I'm likely to do 40k miles a year so I am paying a lot of fuel duty!
Turnover in year 1 is likely to be £35k or so.
Thanks for advice.
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