Self employed question - What happenns after 10,000 miles?

Covert Munkey

Covert Munkey

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Self employed question - What happenns after 10,000 miles?

I am registered as self employed.

I reside North of the Border and travel to London in my old banger 2-3 times a month.

I understand that i can claim up to 10,000 miles at 45p, but after 10,000 miles which, im going to easily smash through, what does it revert to?

I think 20p a mile but unsure?

Any ideas?

CM
 
Somewhere around that. :(

Seems unfair that the more miles you do, the more maintenance / running costs on the car will be, and so the taxman screws you even MORE ! :( ggggrrrrrrr
 
Last time my accountant mentioned it, he said 40p up to 10k and 25p after that.
 
I was looking at this today, and the official stance seems to be that you can't claim for travelling between your home and your work?
 
Exile71 said:
I was looking at this today, and the official stance seems to be that you can't claim for travelling between your home and your work?
Click to expand...

Exile,

I'd disagree there, as there's a way around it. You can actually claim for the mileage going to a task. If you have to travel home to say process footage, write a report, or even do your invoice, then as that's work related you can claim the mileage for going home. If you don't have anything work related to do at home, then no, you can't claim the mileage back to your address. I won't tell if you don't..............

b
 
It's gone up this year!

The mileage allowance changed for the 12/13 tax year to 45p for the first 10,000 miles and then 25p for the rest. Don't forget the extra 5p per mile for a passenger. You cannot use this method if you vat threshold is over £77,000 (I think), you have to add up all the vehicle expenditure separately and work out a % for your business use. This method can be used by anyone and can sometimes work out better than the mileage method, although not as easy.

But I have to agree with exile71 that in most circumstances and on the face of it CM's, traveling to and from work would not be a valid claim. There are exemptions but not for everyone. There are some stated cases on it somewhere the main one is a barrister who claimed travel from home to London as he did lots of work at home. I will try and post some links in a bit.

CM, the best way for you to get back your travel costs is to bill your employer for them as part of your payment.

The "misuse" of the mileage allowance is one of the easiest ways for the tax mans computer to pick someone out for a check.
 
Just checked and the mileage allowance changed to 45p for the 2011/2012 tax year as well. Hope no one has done their return early?

The link below explains when you can claim mileage from home to work.

"The cost of traveling from home to place of work is generally disallowed, representing as it does the (private) choice of where to live and that such is separate from the place of work. It does not matter that the taxpayer may at times work at home or keep their business records, materials, tools etc at home. Everyone needs a place to live and the journey from their place of residence to place of work is, at least in part, occasioned by the private choice of where to live. So the journey will have a dual purpose and the cost is not allowable."

The cases are worth a read but I will attempt a summary.

A Barrister traveling from home to Chambers in London was not allowed even though he did work pre trial work at home.

A traveling salesman living in London but whose sales area was in Cornwall was not allowed to claim.

A milkman, who did all paperwork at home but traveled to the same depot everyday to collect his float/milk and delivered to the same patch was not allowed to claim.

A builder living in Eastbourne who worked at different jobs in and around the Eastbourne area was allowed to make a claim.

BIM37600 - Wholly & exclusively: duality of, or non-trade, purpose: travel costs

Hope that helps.
 
come on now CM, you should let the train take the strain and then hop on a unicycle so you only wear one tyre out at any one time
 
It's like trying to nail fog. every time you think you've got is sussed, the bastid t*axman changes the rules.

When I was a rep, for company based in Kent, trips to the office from Northampton were disalowed. UNLESS I happened to visit a client at some stage of the journey.

One company with an imaginative accountant, insisted to the t*xmant, that I was home based, annd ALL mileage should be eligible.

At one stage t*xman retrospectively assesed the use of a company van for 3 years and stuck me with a MASSIVE bill for its 'personal use'.
I duly showed him the van, demonstrating its £30k worth of sv kit, and told him that any attempt of my using it 'personal' use, would probably see me locked up, and as for shoving a weeks shopping in the back from Tesco or BQ.....and why the hell would I want to use firkin transit van for 'personal use' when I had a bleedin' Lotus !?
 
Cheers Rhea. Hadn't realised it had gone up.

I think with the going to and from home the key thing is a "place of work". If it's a regular or permanent place of work then fair enough, you can't claim. But if you work from home and do tasks around the country then you can claim. A good example was when I did a two day surveillance in Glasgow. As I had travelled from Manchester it wouldn't have been worth my while if I hadn't have been able to claim the mileage.
 
Big y'en, take the leap, mag to grid the car, leave it up there and hop on the choo choo. I've not had a car for a while now in London town and never felt so good ;)

Train Line (.com) does great deals if you are flexible with your travel times and no end to the claims on the train fayers whilst saving money (important to all sweatys) by not using (or having) a car.

AJ
 
I did do some digging after my last post (mainly as I travel 100 miles round trip to work every day and want to claim). It seems that you are not aloud to claim to your permanent place of work from home as I thought, however..... To make it permanent the taxman says that it has to be your main work address for 60% of the time over a 24 month period.

So if you are contracting and changing where you work before the 24 months is up then you are fine. If you travel to different places to work, this is also fine (as stated in the case above regarding the builder as he is not traveling to a permanent place of work.

I am not a legal expert..... Just what I have picked up off of HMRC website. If they state 24 months then you can claim up until then.
 
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