Reimbursed expenses on tax return

GPK10

Hello

I am completing my first tax return and I have a question that I hope someone can answer for me

I am self-employed, and have been paid mileage by a client at a rate of 45p per mile. I believe this is not taxable as it counts as reimbursed expenses.

Please can I ask how I should treat this on my tax return - leave the amount off completely, or include it in the income figure and then also enter on the allowable business expenses section?

Many thanks

Isthisforreal99

You include it as turnover and as an expense. It was both a business receipt and expense - assuming you are using the HMRC rates for your vehicle expenses?

Grumpy_chap

GPK10 said:

Hello

I am completing my first tax return and I have a question that I hope someone can answer for me

I am self-employed, and have been paid mileage by a client at a rate of 45p per mile. I believe this is not taxable as it counts as reimbursed expenses.

Please can I ask how I should treat this on my tax return - leave the amount off completely, or include it in the income figure and then also enter on the allowable business expenses section?

Many thanks

Show the mileage paid by the Client as revenue (income) the same as any other revenue.

Show the costs of the mileage as an expense the same way as you treat any other businesses mileage.
Are you paying yourself simple mileage?
Are you claiming vehicle costs as a business expense?

GPK10

Grumpy_chap said:

GPK10 said:

Hello

I am completing my first tax return and I have a question that I hope someone can answer for me

I am self-employed, and have been paid mileage by a client at a rate of 45p per mile. I believe this is not taxable as it counts as reimbursed expenses.

Please can I ask how I should treat this on my tax return - leave the amount off completely, or include it in the income figure and then also enter on the allowable business expenses section?

Many thanks

Show the mileage paid by the Client as revenue (income) the same as any other revenue.

Show the costs of the mileage as an expense the same way as you treat any other businesses mileage.
Are you paying yourself simple mileage?
Are you claiming vehicle costs as a business expense?

Thank you. This is my only business mileage, I didn't drive except for these paid expenses (this self employment is very much part time). I had assumed that in this scenario I couldn't also claim vehicle costs but happy to be corrected?

Grumpy_chap

You can either pay yourself simple mileage OR you can claim actual vehicle costs.  You can't do both.

Easiest thing is to enter the 45 pence per mile as revenue and the same amount as a business expense.  That's declaring everything properly but results in zero tax impact.

Jeremy535897

The rate you can claim is 45p on the first 10,000 business miles and 25p thereafter.
https://www.gov.uk/simpler-income-tax-simplified-expenses/vehicles-

sheramber

You can claim the simple mileage or you apportion your vehicle costs according to personal use/ business use.
 

You  need to keep a log of your total mileage and your business mileage and apportion your costs by the relevant percentage. 

E.g. personal 99%/ business 1%. 

For a small amount of usage claiming the simple mileage  for business use. , which covers fuel and running expenses, is simpler.

d6fs1l

If you are in self-employment only to a limited extent, it may be worth considering whether to claim the trading allowance rather than actual expenses if the latter are low.

GPK10

Thank you for all of the replies. I used simple mileage in the end and recorded it in both the turnover and business expenses sections