Am I taking the mick here?!
rebecca91
Posts: 40 Forumite
in Cutting tax
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:
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: 0
Comments
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If you think that the running costs of a car consist of only the cost of the fuel you need some tutoring yourself.Free the dunston one next time too.0
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What other income do you have?0
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Full time employment ontop well above the free tax thresh0
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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.0
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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.0 -
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?0 -
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.0 -
Thanks for the reply
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You don't get £27.00. You claim tax relief of 27@ your taxable rate e'g 27 x 20%0
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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-income0
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