New solo company. Please help me

[Ineox]

I became self-employed recently. I would like to do my own book to be able to save some money. Here I have a few silly but important questions to ask. Please help me.

I used to get 40p per mile from my ex-employer when I used my car for business. Can I still do that to my own company? Do I need to save the fuel receipts (some of fuel could be my personal use) or fill a form to claim as before? Also, can my own company pay my Car tax or MOT? I have used my home phone for business. How do I charge the company?:|

Please help me. Thank you very much in advance.

[David Griffiths]

You need to be clearer on your status. You mention being self employed, and then you mention a company. Do you actually have a limited company incorporated at Companies House? If so, you are not self employed.

If you don't have such a company, you are probably self employed and shouldn't refer to a company as it will confuse people. On the assumption that you are actually self employed then

1 Yes, you can claim 40p a mile for business travel, provided that your turnover is less than the VAT threshold (£68,000). That rate applies to the first 10,000 miles, and then drops to 25p per mile. This payment covers ALL motor expenses so you wouldn't be able to claim car tax or MOT costs as well.

2 If you are self employed you can claim a proportion of your telephone costs - if the calls are half private half business you can claim 50% of the bill.

If you haven't already done so you must notify HMRC of your self employed status within three months of starting, or incur a £100 fine. Look at this link. (http://www.hmrc.gov.uk/selfemployed/iwtregister-as-self-employed.htm)

[elainec100@cheapaccounting]

HMRC run a one day course on self employment, see here:

http://www.hmrc.gov.uk/bst/work.htm

It's free and worth going along so you know what you are doing.