Petrol - Travel

[SoleTrader-IT]

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.

 

[Zeno]

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.

 

[MyAccountantOnline]

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

 

[crossdaz]

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

Make sure you do this and don't be surprised if you get a letter in 2013 asking details of your mileage in 2010

 

[SoleTrader-IT]

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.

 

[elaine@cheapaccounting]

Claim for the business proportion of all the costs of running your car:

http://www.franklyaccounts.co.uk/fivemotors.php

 

[SoleTrader-IT]

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.

 

[Zeno]

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.

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).

 

[SoleTrader-IT]

Right thats excellent! Thanks!

Who do i reclaim this off? Is this included in Self Assesment form on 31st January??

 

[Jenni384]

Right thats excellent! Thanks!

Who do i reclaim this off? Is this included in Self Assesment form on 31st January??

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.

 

[SoleTrader-IT]

Thanks to all for being so welcome! and helping me out!

Very much so appreciated!

 

[SoleTrader-IT]

When claiming for Expenses at home office, do i claim at the same time of year?

The reason i ask, is because i do all my office work in my office at home.

Broadband, Phone line, Electricity etc.

Thanks.

 

[Zeno]

When claiming for Expenses at home office, do i claim at the same time of year?

The reason i ask, is because i do all my office work in my office at home.

Broadband, Phone line, Electricity etc.

Thanks.

I don't understand. Do you mean how do you work out the how much to claim?

 

[SoleTrader-IT]

I know that you proportion the bill in terms of how much of the house etc.

I was meaning how do i reclaim? is it self assement also?

Cheers

 

[Zeno]

I was meaning how do i reclaim? is it self assement also?

Yes. I really think you are confusing yourself with the word "reclaim". You are not reclaiming anything but are estimating costs.

 

[SoleTrader-IT]

Thanks Zeno. I think ive got ot sorted in my head now! Currently printing this thread of and hanging on the wall. Manythanks all!!

 

[SoleTrader-IT]

By the way, the Frankly accounts website seems excellent.

Is there any other sites that could help me similiar to that?

Cheers

 

[Atilla]

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).

As he is VAT registered, can he not claim the VAT on the fuel portion of mileage also?

 

[SoleTrader-IT]

Any further advice based upon ATILLAs responce???

Also, any other website similiar to Frankly Accounts????????

 

[Jenni384]

If you're VAT registered then yes, you can claim the VAT rates on mileage.

 

[Atilla]

If you're VAT registered then yes, you can claim the VAT rates on mileage.

Cheers Jenni,
With it not being mentioned i had a moment of worry. Been claiming it but didn't want Mr happy chappy vat man telling me i'd done something terribly wrong.

 

[SoleTrader-IT]

Thanks again all.

Back to the house office rates... can i claim vat on them ??

Cheers

 

[SoleTrader-IT]

?? Any further advice??

Also any advice refernce the same on mobile phone contracts?

 

[SoleTrader-IT]

Bump .. Cheers

 

[Zeno]

Thanks again all.

Back to the house office rates... can i claim vat on them ??

Cheers

No VAT on non-domestic rates but I think you mean Council Tax which is also outwith the scope of VAT.

You can recover the VAT on your mobile phone but will have to restrict the amount in your tax return for any private use.