Self Employed

[honada]

Hi

It is the time of the year and I am helping a self employed under the CIS scheme fill the self assessment.

He is under the threshold and I am aware that he has to fill supplementary form (short) where profits are calculated based on his earnings from the certificates obtained from the contractor.

Regarding his expenses, would receipts of fuel be considered expense and added as a total in the relevant box?

Thanks for your help.
Honada

 

[DeanCo]

You can include the cost of a vehicle and write this down in the supplementary page as an allowable expense, if it is used for business purposes. There are two different ways to calculate this and how much you can deduct. Either you can charge per mile distance travelled for business, or you can claim all the expenses, insurance, service, repairs, fuel etc

For vehicles the first 10,000 miles is 45p and then 25p per mile thereafter. Or, for motorcycles 24p per mile up to 10,000 and then 24p per mile thereafter.

 

[honada]

Many thanks for the reply, as the car was purchased before starting the business I will not include any write down allowances, to be honest it might be very old.

I will include total car expenses as you have suggested i.e fuel and service in the box related.

Is there any major benefits in calculating mileage instead of expenses in the form of fuel bills?

thanks