Business mileage question.

[C.J.Couriers Professional]

Hi!

I have got a question about business mileage allowance. I have just see on one forum for couriers, as I am a self employed courier by myself, post where one guy was saying, that he is using business mileage allowance for his courier work.

My question is, if I am a courier and my work is to travel between places (no permanent place of work), can I use this allowance and are there any other allowances (regarding to using car/van) that I could possibly use?

I will be very grateful for every advice & help. I have visited HMRC web site but I really don't understand much from it... :)

Mike

[profitxchange]

If you are doing a lot of mileage it might be better not to use the mileage allowance 40/25p but book all your running costs (business only) to the business eg petrol, maintenance, tyres on an item by item basis. also log your business mileage as the revenue will x check your numbers. they have internal statistics that will tell them whether what you are claiming is fair and reasonable.
You should talk to your accountant about this - thats what they are for.

[KidsBeeHappy]

Who owns the vehicle? Is it in your accounts? Or if hired - who pays the rental?

[C.J.Couriers Professional]

Vehicle is owned by me.

[KidsBeeHappy]

If you are a sole trader, Is it in the accounts?

[elainec100@cheapaccounting]

Is the vehicle a van, car or bike.

I am afraid that a bit more info is needed to give good advice here.

You can claim for the business costs of the vehicle but the best way to claim needs to be the subject of a bit more info.

[DIY Accounting]

The correct choice would be to determine whether mileage allowance or vehicle running costs were the most expensive and claim for each vehicle the highest cost in the financial year.

To make that choice you might need to keep records of all costs and mileage as the balance can change depending on the vehicle costs and mileage. Mileage allowance is 40p per mile first 10,000 miles and 25p per mile thereafter.

Capital allowances on the vehicle cost are part of the running cost and a large influence as to which is most tax efficient.

[MyAccountantOnline]

Hi Mike

I dont know if you are aware but do bear in mind if you are considering claiming the fixed mileage rates, rather than actual motoring costs (40ppm for the first 10,000 miles and then 25ppm) your annual turnover at the time your vehicle was acquired must not exceed the VAT registration threshold.

It is an area not all accountants seem to advise clients on in my experence of taking on new clients recently, and you would be best to take advice based on your full circumstances from your/an accountant.