Petrol - Travel

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SoleTrader-IT

  • #1
    Well Hello There!!

    Please be gentle with me - Im sparkling new here!

    Hopefully you can all offer me the little assistance that i would appreciate.

    I set up as a sole trader doing bits and bobs in IT around my local area. Kind of the old man in a van haha.

    I am registered with VAT and HMRC(sole trader) since November 2009. Doesnt time fly! :O

    I understand that i can claim back 40p per mile on my petrol for the first 10'000 miles but im not quite sure who i am claiming this back of etc and what proof i require.

    I may need a little hand with my finances but i cannot afford to outsource yet :(

    Thanks in advance.
     
    Z

    Zeno

    Free Member
    Jun 12, 2008
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  • #2
    As a sole trader you are not claiming the mileage from anyone but simply using the official rates as a method to estimate your costs in this area (which HMRC will let you do so long as your turnover is below the VAT registration threshold).

    You should keep a log of the miles driven (nothing too fancy, just the date , miles & purpose) if you do this.

    It may be worth comparing this to the actual cost of fuel, repairs etc & capital allowances restricted for any private use to see which way works out better.
     
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    MyAccountantOnline

    MyAccountantOnline

    Business Member
    Sep 24, 2008
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    myaccountantonline.co.uk
  • #3
    I agree with Zeno - do your calculations first to see if the 40p/25p per mile is your best option, it isnt always.

    You'll make the claim for motor expenses, and all other business expenses, on your annual tax return.

    Nicola
     
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    S

    SoleTrader-IT

  • #5
    Thanks people :) I like this place :)

    Very Very Helpfull.

    What is the other option, my option at the moment, is produce a spreadsheet through out the year with milage purpose etc, then make the claim on annual tax return yea.

    What is the other option?

    Thanks.
     
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    Z

    Zeno

    Free Member
    Jun 12, 2008
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  • #8
    SoleTrader-IT said:
    I have simply a van that is used for business use.

    I am VAT Registered and a Sole Trader.

    How can i reclaim milage, sorry im just not very good at first.

    Thanks.
    Click to expand...

    You take your total mileage, lets assume 15,000 miles. You then multiply this by the official rates:-

    10,000 x £0.40 = £4,000
    5,000 x £0.25 = £1,250
    £5,250

    You will then enter £5,250 onto your tax return as motor expenses (but remember to add on items not included in the allowance - road tolls, parking etc).
     
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    Jenni384

    Jenni384

    Free Member
    • Oct 1, 2007
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    Cheshire
  • #10
    SoleTrader-IT said:
    Right thats excellent! Thanks!

    Who do i reclaim this off? Is this included in Self Assesment form on 31st January??
    Click to expand...
    Yes. It's the amount you enter under Motor Expenses when you detail what your expenses are on the self employment pages.

    You don't "reclaim" this off of anyone, by the way.

    It forms part of your expenses.

    Turnover - expenses = profit. You are taxed on profit.
     
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    Atilla

    Atilla

    Free Member
    Aug 25, 2008
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    W. Yorks
  • #18
    Zeno said:
    You take your total mileage, lets assume 15,000 miles. You then multiply this by the official rates:-

    10,000 x £0.40 = £4,000
    5,000 x £0.25 = £1,250
    £5,250

    You will then enter £5,250 onto your tax return as motor expenses (but remember to add on items not included in the allowance - road tolls, parking etc).
    Click to expand...
    As he is VAT registered, can he not claim the VAT on the fuel portion of mileage also?
     
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