mileage allowance

[royzart]

hi...i use my own vehicle for travelling to and from work
i am self employed and newly registered...what tax relief could
i get to reduce my tax bill

[factor-fiction]

I'm not an expert on taxation for self employed people but I doubt you'd get tax relief on your travelling to and from a regular place of work. If you use the car in the course of you job (other than travelling to/from a regular place of work) you will probably be able to claim tax relief.
Have you looked at the HMRC website?

[Buenchico]

Unlike employed people, you can't work on the basis of a mileage allowance. You need to record all of your outgoings in relation to the business use of your vehicle (such as fuel, insurance, servicing, repairs and breakdown cover) and show those as expenses in your accounts:
http://www.hmrc.gov.u...penses-allowances.pdf

You should note that depreciation of the vehicle is not an 'allowable expense'. Instead it needs to be treated as part of a capital allowance:
http://www.businessli...394511&type=RESOURCES

Chris

[royzart]

mileage allowance currently stands at 0.40 per mile for the
first 10,000 miles 25p per mile thereafter...so i thought
thank you for responding anyway

[boxtops]

We don't get mileage for going to and from a regular place of work, only if we are going to a different location.

[Buenchico]

The 40p/25p mileage allowance refers to the maximum that can be offset against PAYE. It does not apply to those who don't pay tax under the PAYE system.

[royzart]

thank you....so i could claim for fuel,insurance,repairs etc

[factor-fiction]

I expect it has to be a genuine expense of the business. I think you'd have to say you need to use it in teh course of your work. Maybe HMRC would need to know what % of the use is for business and what % is for private use, but I admit I'm not an expert on small business tax matters

[Tom Braider]

Sorry to contradict Chris but self employed traders can claim business motoring expenses on the 40p/25p per mile figure. There would be no additional claim in respect of depreciation - 40p per business mile is the maximum claim if you do it this way.

[Skyline D]

As Tom says, the 40p per mile figure CAN be used by the self employed too but it certainly wouldn't normally be done that way. It would be much more usual to claim your correct vehicle expenses and make a private adjustment to the costs where necessary (whether it's necessary or not depends on whether the vehicle is also used for personal purposes - if it's only used for business there would be no problem with all it's expenses being claimed).

What isn't clear at all here from the OP is what he means by "travelling to and from work"? If you have an office that you work at, then travel to and from that office to home is NOT a business expense and isn't allowable at all. You'd get no deduction for it, just as there's no allowance for those of us on PAYE to get to and from work. However, if you actually meant that you work at different sites all the time and your base is your home (like a jobbing tradesman) then the travel to the work site WOULD be allowable as a business expense. You need to be clear about which it is.

[McMouse]

Get an accountant, it will save you money in the long run.