“I changed the name of the channel to something that makes sense to people who aren’t already clients of The Copper Coins - called it Accounting Tea Break - and then promptly made a coffee instead of a tea because I’m a hypocrite.”
I've used my personal car for 20 years, and never claimed. I get a car allowance every month, but I want to know if I can claim. Can I also claim for previous years too?
Great channel - new subscriber! Question - I am a doctor in specialist training. 5 year programme with rotational placements for usually 1 year at a time. Given that the place of work changes every 1 year would you say that this would be classed as a temporary place of work...such that travel to and fro would therefore be eligible for tax relief? Thanks
Can you please tell me the following. My company pay me 65p a mile for my job commuting to clients everyday but they are taxing me every 20p (above the 45p recommended MAP) is this correct
I keep reading that you MUST keep a physical logbook with odometer readings before and after every applicable journey (and personal vehicle use too, some say) - is that not the case?
Hi ATB, can I claim 45p per mile for self employed business travel for each way, i.e. I travel from A (home) to B (working destination) 10 miles, then return B to A 10miles. Question is, do I claim 45p x 10 miles or 45p x 20 miles (for the total business travel)?.... thankyou
Hi iam a gardener If I do 2 jobs in the morning then drive home for a break and lunch and then go out for a second run of jobs abount 3 hours later and do another job or 2 and then back home Would I be able to include the miles that I used to go back home in the middle of the day
Hi, Great Video, I keep a mileage Log, I use my own car, I have a fuel card from work for which I buy all fuel but then have personal miles deducted from my wages each month. How would i claim any rebate on a situation like this?
I think they just want you to write it down, to keep a record in case they ever ask to check. It's not like a black box where you can *prove* every mile you travelled for work. Just a list of journeys, dates and miles. (I mean, you *could* take photos of your car's odometer I guess, but I don't think anyone expects that!)
Thanks for the video My question is who sets the mileage allowance and can it be changed now fuel and costs for servicing and repairs have all skyrocketed
How does it work for couriers if you do 80k miles in a year in your van as all the miles are business miles and u get paid per mile and thats how you make your income
That one stumped me for a minute, but I think I have the answer: you are being paid taxable income for doing work (whether it counts as employment or self employment) so you can save tax by claiming a mileage allowance in your Self Assessment. 10k miles at the high rate, then 70k miles at the low rate. Or, alternatively, if some of the money they give you is already tax free some how then you don't need to claim because your tax bill will already be lower. That would be one of two ways: 1) if you're an employee, your payslip showing £X income and £Y untaxed mileage allowance adding up to the amount they pay you, or 2) if you are self employed and you treat some of the money they give you as taxable income to declare in your SA and some as untaxed mileage payments from the company. Either way, your tax for the year should be based on the total you get paid MINUS the roughly £22,000 mileage allowance you'll be deducting one way or another. I think that's it. But go find an accountant if the answer comes out weird and wrong for you!
Hi. Can I ask a quick question. I'm an employee, I did 5000 miles in the tax year for the company, they paid me 12p per mile. I intend to claim to difference (33p per mile) £1650. Does this lower my tax bill by the full £1650, or by £1650 less my 45% tax rate?
Great channel, my question is if I am self employed and do use my van on which I claim mileage allowance could I still claim Vat straight from diesel receipts or have to calculate Vat from millage. Thanks,
Hi iam starting out self employed working on a site and needing to pick up 3 other people for the site, a full day is 50 miles all in per journey can i claim any of this in my tax return
Hi, can you switch from receipts to mileage claim, if in previous years you claimed for receipts? I know you can't switch from mileage to receipts, but can you switch from receipts to mileage?
Great video thank you. Quick question - my agency pays me 25p per mile when I am with a client. For that mileage claim do I then only claim 20p per mile as an expense or still the 45p?
Hi, new to all this, my work is pushing us to work from home which means I now have to visit client sites to do part of my job but theyre not paying expenses because the client site is closer than my workplace was so I have a net gain. Can I claim milage there and back or is it just milage to the temporary site?
Hi am getting mixed answers. I drive my own car to different places and then drive another car. Can I claim to travel to my destination. Also I was told I can't claim mileage because am not an employee but a sole trader. I dont understand, so I can't claim for mileage. What can I claim for
If people tell you that you "can't claim mileage" they might mean that you can't claim money from the company you are working for because they only pay employees. Not sure, but that might be the confusion. Yes, for self-employed people, mileage allowance is an allowable business expense you can use to reduce your profit for tax when you are doing your Self Assessment (at least for the bit in your car - I wouldn't claim for the bit in another car because you don't pay for all the petrol and servicing and depreciation on the other car). But if you are spending less than £1,000 on allowable business expenses, you'll probably be better off claiming the £1,000 trading income allowance instead. Good luck!
Hi, a friend of mine has had a bit of a pay rise which is good, but, on the other side of the coin her work have told her she has to do 20 miles before she can claim, for the miles beyond 20, so in effect she's driving for free most days, as her work driving is less than 20 miles. Her pay increase (taxable) doesnt equate to what she was getting through expenses. Is there anything she can do to claim back those initial 20 miles which she isnt being paid for?
Yes, so she'll have a split case now: if she gets paid 45p per mile for the miles she *IS* paid for, that's tax free payment, she can just take it. And she can "claim" the 20 miles each time (45p * 20 = £9) as an allowable expense of her employment, saving her a little tax. So add up all of those 20 miles for the tax year (6th April to 5th April) and claim them. The way I'd claim as an accountant would be to complete a Self Assessment, fill in the employment details using the P60 (or P45) for the job for the year, and then adding the mileage expense in a box in that same section. BUT she might be able to save the trouble of doing a Self Assessment by calling HMRC with the mileage figure she's claiming for the tax year and telling them that. If it's not a huge number, they might be able to issue a refund without asking for a full tax return, and maybe give her employer a tax code that means a little less of her salary is taken in tax in future months because of the miles driven. The tax code thing won't be totally accurate, she'd still need to record miles and claim them at the end of each year. If she's a basic rate taxpayer, she'd save (or get refunded) 20% tax on each £9 (20 miles) she claimed. So £1.80 a time. If that's most days of work (if she has a delivery/travelling job) that'll add up nicely. Good luck!
When I calculate my business mileage ( I use my own car for business) and the amount I need to claim the sums don't add up for me. The information from my P60 is on the system already and is correct, I just add the amount I am claiming for business mileage. The new online calculation shows that I have underpaid tax even though tax is deducted at source by my employer. Surely this should reduce my tax liability not increase it? When I spoke to my employer they said I need to speak to the Tax office, when I spoke to the tax office they said it was strange but to submit it anyway and they would look at it. When I did that last year and contacted them they just said the submission has been made and there was nothing they could do about it. Is there something that I am misunderstanding?
You're right that adding in the business mileage should reduce your tax bill or increase the amount HMRC owes you. If I were you, I'd remove the business mileage and check the tax calculation, then add the mileage allowance and check the tax calculation again. If the tax goes down (or a repayment goes up) then it's working and you can submit the return. PAYE tax at source can be a bit wrong, so you can put in your P60 figures and a tax return can say you owe, say, £200 in tax still. And then you add in your mileage and that goes down to, say, £100. It doesn't mean it's wrong, as long as adding the mileage is changing your tax bill in the right direction. Don't put a minus in front of expenses. (I don't think the forms let you, but in case they do, don't do that.) And for your 2018-19 tax return, if you have mileage to add and they told you that you couldn't, I *believe* the deadline for amending a tax return is 12 months after the original deadline, so you'd still have a few weeks to send them a whole new 2018-19 tax return with 45p x X miles expenses to reduce that old tax bill and a get a few pounds back from them. Good luck!
Hey man, My job is about 80% driving in my own car to get to clients' houses. I have tried to 'Claim tax relief for your job expenses' but my expenses add up to over £2500, so it says I need to do a self-assessment. On the self-assessment, it says I am only owed just over £1000. can you tell me where I am going wrong? first time attempting this and it is very confusing.
Hi, thanks for the video. When you say your able to claim 45p per mile, do you mean HMRC will pay you 45p per mile to your bank account when you do the self assessment? Or do they offset the amount from your tax bill if so what happens if your profit is within the tax free allowance? Thank you for your time.
Not quite either: what they do (what you do really) is you reduce your taxable income (your profit if you are self employed, or your taxable salary if you have a PAYE job) by 45p a mile, and THAT reduces your tax bill. Either you paid all your tax through PAYE and HMRC owes you a little refund, or your Self Assessment tax bill for your self-employment is lower than it would have been without the 45p per mile claim. So you aren't 45p per mile richer, you are richer by the tax on 45p per mile, and how much that is depends on what tax band you are in and a dozen other factors. Good luck!
Hello - I have just got a new company car. I'm not sure whether it would be better to take the company fuel allowance or just pay for my personal mileage at 14p per mile. The BIK for the fuel allowance on this particular hybrid car is £2746. I calculate that I will be doing circa 5000 personal miles per year. With this in mind do you think that getting a fuel allowance and paying the tax on this would be more cost effective than paying the 14p a mile.......I think it will.....but I'm not an accountant. Many thanks for your help! Marc
Can't be sure without sitting in an exam hall and having terrible flashbacks to accounting exams, but it looks like it will work out close either way, which is a good answer in that it means it doesn't matter too much. Paying 14p a mile out of your own pocket might cost you £700, getting a £2,746 BIK could cost you more or less than that in tax depending on how much you earn, but is likely to be pretty similar. So if the paperwork is easy, take the allowance, and if it's a pain then just pay yourself and you'll likely not be badly stung either way. Very informal advice there, not a calculation, but I hope it helps.
For more than £2,500 you need to complete a Self Assessment for each tax year you want to claim for. Search for "register for Self Assessment" and fill in the online form to get registered, or call HMRC. Once you are set up on their system you should be able to complete a Self Assessment online. You'll need all your personal details (you'll know those) a P60 or P45 for each job for the year (you should get that in April or May after the tax year finished) and then the details of those +£2,500 expenses. Put the expenses in with the employment details and submit it. Good luck!
Hi, I am been working for the company for the last year.I did not know about this . I have only learned this recently from your channel can I claim one year back for the tax year 2020 to 2021.I mean last tax year.i was working through an umbrella company. can I still apply? Thanks
Yes, to claim for unreimbursed mileage (if you aren't already completing a Self Assessment) you should call HMRC with the details of your 2020-21 mileage and ask if they can adjust your tax bill without completing a full Self Assessment. If they say no, that you have to do a Self Assessment, then you have until the 5th of October 2021 to register for a Self Assessment, and then you have until January 2022 to complete your 6th April 2020 to 5th April 2021 Self Assessment. So it isn't too late! (Also, if you already did a 2019-20 Self Assessment, then you have until January 2022 to submit an amendment, so if you have mileage you can claim for the year before last then you can do that too.) Good luck!
Hi, if I have buy to let property in joint name with my wife 50/50, are we both eligible for mileage allowance, use of home allowance of £6 per week and 20%tax relief for same property?
Great video and it helped clear something up for me. Just a quick question, I just started on Ubereats delivering food and Amazon flex, and I had to change my insurance over from just personal use to business use, which has increased the cost a lot. Can I claim back the full insurance cost as an expense plus the 45 per mile? Thanks
I don't know for sure, I've never looked into that exact situation. My instinct says no, the 45p is supposed to cover all of those costs, including insurance, but I know a lot of people driving for Uber have crazy high insurance so some accountant out there must have written about it somewhere in a definitive way. That would be my advice: look for UK Uber driver forums, they'll have been discussing exactly this for longer than the UberEats guys. Good luck!
Hi I’m a self employed labourer and I am a passenger to a site that’s nearly finished and I think would class as temporary work place. I pay £10 a week to the driver and have worked out I have traveled 1184 miles is there any tax I can deduct or is that not an allowable tax
So you wouldn't be claiming the mileage allowance (since it isn't your car) but 1) the driver could claim the allowance and a few extra pence for taking a passenger and save some tax that way and 2) the £10 a week you are spending is a business expense, just like a bus ticket or train ticket. I was going to say that you can't claim the expense without a receipt, and I'm guessing he won't want to give you a receipt, but this page says you are allowed to claim even without a receipt: www.contractorcalculator.co.uk/receipts_contractors_claim_dispensation.aspx So your self-employed profit comes down by £10 a week and, if it saves you 20% tax that's £100 a year, maybe more with National Insurance. Last thing to note is that the £10 a week would probably be taxable income for the driver. It's not your job to police that, but I suppose if HMRC randomly chose you and wanted to see all your expenses, the next thing they might do is go to your driver and check if he declared the extra income that you declared as an expense. That's pretty unlikely, but there's a slim chance.
Hi could you please help me out. I need to know if it’s possible to claim tax return on expenses such as public transport to work, uniform etc if paid through PAYE. I only earn around 18k but pay out £3k in taxes each year. I’m confused?
Hi! It's complicated working out which journeys you can claim for, but the next video after this one explains which journeys are allowable expenses. Here's a link to the next video explaining which journeys you can claim for: ua-cam.com/video/3rkLIYb2Qsg/v-deo.html Apparently you can't claim for buying uniforms but you can claim for cleaning, repairing and replacing uniforms, and you may be able to claim that back for the past four years. Here's an article from the LITRG website talking about uniforms: www.litrg.org.uk/latest-news/news/181017-employees-%E2%80%93-what-do-if-you-incur-expenses-relation-your-job. Oh, actually this page is a good explanation of some uniform tips: www.moneysavingexpert.com/reclaim/uniform-tax-refund/
Quick question, if my project is for 3-4 years duration which is considered permanent, can I then claim the difference for mileage allowance from hmrc? my current company is paying only 24p/mile. thanks a lot in advance
Hi! I don't think you get to claim, no. Since it counts as a permanent place, your travel back and forth from it can't be used to reduce your tax bill.
@@AccountingTeaBreak Hi, just learned that my current place of work is temporary despite the length of the contract, because our address is head office in our signature and also our contract states that the project site is considered temporary. Would I now be able to claim the mileage difference from HMRC? Thank you in advance
I work for a company that pays me 12p per mile and I’ve been told that I can claim the rest from HMRC. Now will they pay me 33p per mile up to the 10,000 miles and 25p afterwards or will they just simply reduce the amount of tax that I will pay the following year ? Should I claim each month or at the end of the tax year as I do over 2,000 miles per month?
You get to "claim" the 33p difference for each of the first 10,000 miles, and if they still pay you 12p per mile for the miles beyond 10,000 then you get to "claim" 13p for each of those (25p minus 12p). And "claim" means you can put that amount in your once-a-year Self Assessment to reduce your tax bill. It won't reduce your tax bill by the amount you claim, it will reduce your taxable income by the amount you claim, which will probably reduce your tax bill by 20% (or 40%) of that amount. And if you don't need to do a Self Assessment already, it's always worth calling HMRC at the end of the tax year to see if you can just tell them your mileage claim figure because they might just make the change over the phone and either send you a small tax refund or change your tax code to take a bit less tax next year, saving you from doing the whole form. Can't promise, but it's worth a try. Good luck!
I'm self employed but solely work for one company. I use my car to drive to a depot and use a company vehicle to go to wherever the job is. Can I claim for my mileage to the depot
I wouldn't if I were you: it feels too much like a normal commute to me. But that's my gut instinct, I haven't dug into exactly that situation before and perhaps I'm wrong: as you've noticed, it's not exactly crystal clear what you can and can't claim! This part 2 video explains more about how HMRC defines a temporary place of work: ua-cam.com/video/3rkLIYb2Qsg/v-deo.html But I would not be surprised if you watched that video and didn't feel like it gave you a concrete answer to your situation. Like I say towards the end, we're away from logic and in the land of religion with this one!
Thanks for the video. I have a question: self-employed cleaners' travel. Allowable or not? Self-employed cleaners normally have a regular pattern of travel, visiting various clients on the same day every week or month. They may be based from home, but perhaps not enough to make the home a base for tax purposes.
A good question, and it's one I *hopefully* answer in the video after this one: ua-cam.com/video/3rkLIYb2Qsg/v-deo.html In that one I talk about the 24 month rule, the 40% rule, the site-based rule... all the things that might decide if a cleaner with a particular work pattern gets to claim some (or all) of their travel. Good luck!
I don't know of a specific rule that says you can't, so if the travel meets the various rules about temporary places of work (ua-cam.com/video/3rkLIYb2Qsg/v-deo.html) then I would claim for it, yes. Good luck!
When claiming business mileage can you claim to the temporary place of work and back? So from home to the temporary place of work and then back home? Or is it just the miles to get to the temporary place of work?
Yes, absolutely, and it was bad of me not to make that clear. All those times I talk about claiming to go somewhere you should mentally add a silly voice saying "and back again!" There will be cases where you do a circular route where only one or two parts can be claimed according to these rules, but for any out and back journey the out and the back can be treated the same.
Can I claim mileage for using petrol cars, hybrid, electric cars or only for using diesel cars? If I claim mileage can I also claim repairs and servicing? Thanks
For the 45p per mile claim it doesn't matter what type of fuel the car uses, it can be diesel, petrol, hybrid or electric, or any other type of car power they come up with. And you can't claim repairs and servicing as well. (The idea of the 45p thing is that only perhaps 10p will be the cost of petrol (or maybe 1p if it's electricity) but the rest of the 45p is to make up for the wear and tear on the car, the insurance, the MOT, the servicing, the depreciation. So if you're claiming 45p per mile, you don't claim any other car running costs.) Cheers!
Hi! I can find the specific answer to my question so would appreciate if you could help? I have started working for Amazon Flex, to get to depo i drive 20 miles, then say 10 miles delivering and 10 miles driving back home, for which parts am i able to claim the £0.45p? Also is it a waste of time as I'm going to be under £12,500 tax free allowance therefore cannot deduct? If so can I still get a reimbursement for using my own car for work? Thanks
To start with the end of your question, since you're earning less than the personal allowance threshold, it's probably not worth your time claiming it. You'd be reducing your income-for-tax by, say, a few hundred pounds, but since your income tax is £0, it wouldn't save you any money. I guess the rest of the answer doesn't matter because of that first bit, but I would *imagine* in your situation that you'd be allowed to claim mileage for the delivery miles and maybe for the drive home at the end (assuming you don't return to the depo) but not for the morning drive to the depo since that's your typical commute. And if your employer chose to pay you 45p per mile extra for the bits of travel you can claim, you'd be allowed to claim that tax free without going over the personal allowance. But I'm pretty sure that's not how these delivery companies pay, so I'm assuming that won't be happening. If you get payslips that have your salary plus a mileage allowance written on them, and you creep up into the basic rate of tax, come back and message me and we'll check there isn't some way to save a few pounds in tax. Ta! B
Hello, I need some help with that . As a self employed I am doing my self assessment, just wondering how exactly to claim this 45p per mile? For example if I have 1000 miles for business travel, so 1000x0.45 = £450 ? In which section of my self assessment I have to write this? Is it - Car, van and travel expenses at Allowable Business Expenses ?
If your income from self-employment is under £85,000 you just put a single expenses figure in your "Total allowable expenses" box of the self-employment section of the Self Assessment. That figure is for everything you spent on the business, and would include £450 for mileage if you drove 1000 miles. (If you earned more than £85000 then the travel expense goes in "Car, van and travel expenses", yes.) So the £450 reduces your profit, and that then saves you tax at 0% or 9% or 29% or 42% or whatever tax rate you are paying (income tax and class 4 NI). Hope that helps!
@@AccountingTeaBreak Thank you for your answer, it is very helpful. If I can ask one more. In case this tax relief should be claimed for someone who is an employee. What kind of form we have to complete then? I am also study accountancy, but no one show us how to work with this, so I am trying to teach myself by searching an information online. Thank you!
@@radostinagarkova2815 I know what you mean: accountancy training doesn't cover the practical forms, just the theory behind it! Here's the link you need: www.litrg.org.uk/tax-guides/employment/what-if-i-pay-too-much-tax#toc-how-do-i-claim-a-refund-if-i-have-spent-my-own-money-on-employment-expenses- They say you can use a form P87 to claim expenses as an employee without doing a whole Self Assessment. If the expenses are too high (or if you are doing a Self Assessment anyway for some other reason) then you put the amounts in the Self Assessment on the page devoted to that employment. Good luck!
Hi, yes, I believe so. I've never seen anything referencing who owns the car or pays for the petrol or is on the insurance or any of that, so go ahead and claim the mileage if you're driving for work. Thanks!
I'he got a question: My husband use to work in same place since 2016 with 4 working and 4off days. He is working with same company but this company have differents shifts and Retail as Asda, Wilko,as I said he used to work 12 hours shift for Asda, but know as request from him they change him to work for 8hours per day for 5 days, he is in the same place but in different shift. Can We claim milleage allowance, because on Hmrc website they are saying that people cant claim for fuel If they go to their usual work unless its temporary it is a bit confused. Thanks in advance, by the way amazing videos ;) Note:he is travelling daily from Nottingham to OLLERTON with his own car
I think in that situation he can't claim: HMRC have this thing they call a "site-based" approach, which means that if you change jobs/shifts/employers but you go to roughly the same place (most of your commute is the same, just the last little bit is different) then it all counts as one place of work. So people who change jobs a lot within a small area, like the centre of london or a business park, they can't claim. But it might not be exactly that for your husband. This video of mine is the first of a two-parter, and the second one talks more about what makes a place temporary or not. Here's a link, in case that other one is more helpful: ua-cam.com/video/3rkLIYb2Qsg/v-deo.html
Thanks for informative videos Please advise can a UK limited company receive remittance say as a gift from parents in India in inr to gbp via online wired transfer and what are its tax implications compared to receiving money as a gift to a high income tax payer individual in UK ? Ideally this money will then be used for 1st property purchase in the UK If you can make a video will be brilliant and useful to hopefully few people 😊🙏 Many thanks
I wish I knew the answer, but I'm afraid I don't. I would worry that any income to a company would be viewed as taxable income if HMRC looked at the bank records. A gift to a person, not a company, would probably just be a gift. The only tax on personal gifts I know about is inheritance tax, and in UK the window for inheritance tax is seven years: that means if a gift is given at least seven years before the giver dies then it is outside of inheritance tax. Sorry I don't have more detail for you, but hopefully that helps a bit!
Hey thanks for the video! Been looking for an answer and this has been the closest to an answer I can find. I get £343 car allowance which is paid my my employer which is in my PAYE. Then I get 29.62p per mile I claim back through my employer. I do about 15k miles a year so I was wondering if for this I could be eligible for a tax return or claim the difference on what is the usual 45p for 10k and 25p thereafter.
@@Sast06 I did manage to find an answer to this. If you pay tax and NI on your car allowance. And then receive the mileage allowance below the tax free allowance you can complete a form online on Gov website. P87 form. Or alternatively complete a self assessment you can claim back 20% days of the amount owed.
Hi There, Also looking for an answer on this. I get similar car allowance but my company only gives me 13p per mile. Do i claim the 45p from the gov or would it be 32p i would claim. I do about 8500 miles so takes me over the normal allowance so i am doing self assessment. Thanks!
@@geordieracer7759 hi. I did find an answer on this. Assuming you do not complete axed assessment each year. There is a form you fill out after the tax year ends. Off top of my head I believe it is called a P86. It takes only a few minutes to complete on the HMRC website. You will need you total miles driven for work and total amount paid. They calculate the amount owed for you. You can claim for up to 5 years prior. What they will then do is either calculate the amount owed and pay you 20% of that as a cheque. Or add the amount owed to you new years tax code so you get the 20% equivalent as a relief on you next years tax. They send you a letter explaining this to you after you have completed the online form.
i get an annual allowance for providing a car for work, am i able to claim tax relief on the difference between the 45p a mile rate and the 10p a mile my employer actually pays me ? great videos thank you ,
I thought that was something that only happened in accounting exam questions, I didn't know anyone actually paid partial mileage! Yes, you can claim the difference, 35p a mile for the first 10,000 miles in your case. :-)
@@AccountingTeaBreak That was my question too, think its common. I have a company car allowance but my company only reimburses fuel for business travel at 12ppm, am I right in thinking that I can claim 40% tax back on the difference, I do a lot of business miles. thanks
@@AccountingTeaBreak hi I’m still a little confused my company pays me 14p a mile I’d did 8.665 miles does this mean I can claim 31p x 8,665 this would be £2.686 is this the amount I’d get back or a % amount???
If I drove 10,000 miles for work in 2019/20 will I receive a tax rebate of £4,500 or £900? I am a 20% rate tax payer. Can I still claim for the tax year 19/20? Thanks
I'd expect £900 from them, if you're 20%. So yes, your claim of £4,500 reduces your tax bill at 20% of that. And although the deadline for completing a 2019-20 tax return was 31st Jan 2021, the deadline for amending one is one year later, so if you've already done an SA you have until Jan 2022 to amend it and get that claim. If you haven't done an SA (because you are a regular employee) there may still be a way to claim it so try calling them and explaining about your mileage and how you only just found out you could claim for it, and see if they can either sort it out over the phone (typing in one number for you to generate a refund) or if they'll insist you do a late self assessment for 2019-20. Whichever it is, for £900 it should be worth the hassle. Good luck!
Hi, I've started doing Amazon Flex on the side of my full time job (29k), and I've earned over £1000. I've kept a spreadsheet of dates, earnings and business mileage but only been recording the general area. Will this be enough evidence to keep on file when I submit my tax return. Thanks Mark
I *believe* so, yes. I would be very happy to have a day's mileage written down for that day's deliveries and just a general region where you were driving: "14 miles, Doncaster deliveries". It would be crazy if HMRC expected a map of every house a delivery driver visited in a day. Now I've never had HMRC audit a client's mileage record so I could be wrong - the rules were written for business men going to a single meeting in a day, so you could write down exactly where you started and stopped - but if they expect a house-by-house record of mileage for delivery drivers then you and me are starting a campaign in the press and getting all the half a million self employed delivery drivers in the UK to go on strike until HMRC back off. :-)
Hi mate thanks for the great video, I have a question which I been searching for answer and never found it 😁, I’m an Uber driver I want to ask, are mileage counted as expenses only when carrying a passenger? For example if I dropped a passenger ten miles away from home late night And did feel I want to take anymore jobs, so is going back home empty counted as mileage expense? I would really appreciate you reply 🙏
I *believe* you can claim those miles, yes. You're only driving for work (even when empty) and you aren't going to or from a regular place of work, so I can't see a reason not to claim. If you stopped by the supermarket on the way home then I'd stop claiming the miles at that point, but if you go straight home from your last drop off, I don't know why you shouldn't claim. (Which is to say, there could be a reason I've never heard of, but no alarm bells are ringing in my head.) Good luck!
One question, I earn a £34k salary as an employee, I’ve just started Amazon deliveries, do I need to register as self employed if I earn less than £1000 in the year?
No, if your £34k salary is a PAYE and payslips and P60s and class 1 NI and all that formal stuff *salary* (rather than being another type of self-employment) then the £1,000 trading allowance protects you from ever having to register for the amazon deliveries. You're sort of the person that allowance was designed for: people with a job and a side gig who would have had to do a full Self Assessment for a small amount of income. Just keep track of your income so you notice if it goes over £1,000.
Hi there, as a driving instructor, why am I not allowed to claim the mileage rate? As you’ve stated in this video it’s much easier to calculate this way. Many thanks in advance.
Aren't you allowed to claim 45p? If you've found somewhere that says you shouldn't claim it, it might be that because your job is so much about your car (you work in and with it, rather than just using it to get from A to B) that you might benefit from doing a more complicated method that lets you claim a higher expense. Since most driving instructors are self-employed, this might be something people talk about online in forums. (I've never looked into it, so I don't have any detailed advice.) I think, if you can find an accountant who has several driving instructor clients it would be worth paying them to help at least for one year because if they know a method that lets you claim more of your vehicle cost that might really bring down your profit figure and save you tax. And maybe when you speak to one they will just say, "claim 45p per mile" in which case you know how to do that yourself. Good luck!
@@AccountingTeaBreak Thank you for the quick & long reply. On the GOV website (link below) it says that Taxi Cab Drivers & Driving Instructors can’t claim the mileage rate - I’m baffled as to why we are singled out. www.gov.uk/simpler-income-tax-simplified-expenses/vehicles-
@@rawdah786 Oh yes, so I see. I wish they explained it a bit better there. If I had to guess it is probably because the vehicle was built for a job: it's the taxi and the dual control car, rather than the job you do in the vehicle, that matters. Good luck with the claims!
Hi I run my own car doing approx 25k miles per year. My employer provides me with a fuel card. How does this work with regard to claiming mileage allowance and claiming tax relief from HMRC
You've got me stumped there. It's a good question. If the answer were fair, it would be "whatever mileage allowance claim you could make for 25k miles, minus the cost of the petrol paid by your employer." But I can't promise the answer is fair. I can't see anyone online explaining this exact situation. The nearest I can find to support that interpretation is a bit at this link: www.gov.uk/expenses-and-benefits-business-travel-mileage/rules-for-tax where it says "your employee will be able to get tax relief (called Mileage Allowance Relief, or MAR) on the unused balance of the approved amount." So if your claim was for exactly 25,000 miles, that would be an expense (for tax relief) of £8250. If your company fuel card bought £4000 of petrol, then the difference to claim is £4250. But I can't see anything positively saying that is a reasonable way of doing it. If you bought the petrol on your own card and your company paid you back for it the maths would be the same and I'm confident you would be able to claim it, so the only risk is if there is some obscure court case that says the use of a fuel card prevents you from claiming any MAR. Probably a risk you're willing to take if the tax you save is coming up on £1,000 at basic rate!
Interesting hypothetical. Let's say you was a self employed takeaway driver, and earnt £12,000 (£1,000pm) in a year. You would owe no tax, just NICs. But you would inevitably rack up alot of miles in a year. Let's say you did 9,500 miles at 45p that's about £4,200. A takeaway is never going to give you that, and you owe no tax as you earnt too little. Would the Taxman then give you the money, or does it just reduce the net income to a lower (still untaxed) amount?
@@paulwisdom5383Ha! Huge reveal, the killer was in the back of the delivery vehicle the whole time! And he was filling in your Self Assessment for you! But yeah, I think you've got it right: the 45p allowable expense reduces your self employed profit which would not help much. Going from £12,000 profit to £7,800 profit would save you a little Class 4 NI (which starts at a lower threshold) but once you are below that threshold there's little benefit in saving even more. (I mean, theoretically it could help at some point, but that would be a very rare situation.)
Hi this is fantastic thanks for the video! I have a question - if I have recently bought a car in the last financial year...how much of the car (if any) can I claim? And if I can claim, would I then claim receipts for fuel rather than 45p per mile? Look forward to hearing back! Many thanks, Ben 🎷
I'm gonna be honest: claiming for a vehicle as a full business expense is complicated as hell. Totally worth doing if, say, you're in the construction trade and you buy a double-cab-pickup, but claiming for a normal car involves the business claiming it as an expense bit-by-bit over several years, and then there being a "benefit in kind" to you for your private use of the car and that means tax on you, and how much tax depends on the fuel-efficiency of the car (that's why car reviews talk about g/km of CO2: they are talking to the company car brigade, who will be allowed to choose a company car and pay tax based on the fuel efficiency of it. It's fine if you run a huge company and have an HR team to deal with that junk, but unless you have a trade vehicle like the aforementioned double-cab-pickup I would stick with claiming the 45p per mile instead.
“I changed the name of the channel to something that makes sense to people who aren’t already clients of The Copper Coins - called it Accounting Tea Break - and then promptly made a coffee instead of a tea because I’m a hypocrite.”
I've used my personal car for 20 years, and never claimed. I get a car allowance every month, but I want to know if I can claim. Can I also claim for previous years too?
What if I'm not self employed and I use a company car but I pay for my own fuel , but the employer only gives me 12p per mile?
say if you went from a to b in your car. is the mileage you record one way or return mileage iswell.
As I'm a domiciliary carer how would I claim my mileage maybe you can do a video on this.
Great video! I have a company car and pay for fuel myself, the company then pays me 12 pence a mile. Is it possible to still claim? Thanks
Yes! You can claim the difference upto the 45p for the 1st 10,000 then up to 25p for anything after.
Great channel - new subscriber!
Question - I am a doctor in specialist training. 5 year programme with rotational placements for usually 1 year at a time. Given that the place of work changes every 1 year would you say that this would be classed as a temporary place of work...such that travel to and fro would therefore be eligible for tax relief? Thanks
Can I claim tax relief on business mileage when I am using a company car?
Can you please tell me the following.
My company pay me 65p a mile for my job commuting to clients everyday but they are taxing me every 20p (above the 45p recommended MAP) is this correct
I keep reading that you MUST keep a physical logbook with odometer readings before and after every applicable journey (and personal vehicle use too, some say) - is that not the case?
Just Eat and food delivery drivers what they can claim??
Hi am I best to charge miles on my private car for my ltd company or lease a van 27k miles a year
If you use 2 cars for work is the 10,000 mile cap per car or per person?
Hi ATB, can I claim 45p per mile for self employed business travel for each way, i.e. I travel from A (home) to B (working destination) 10 miles, then return B to A 10miles. Question is, do I claim 45p x 10 miles or 45p x 20 miles (for the total business travel)?.... thankyou
Hi iam a gardener
If I do 2 jobs in the morning then drive home for a break and lunch and then go out for a second run of jobs abount 3 hours later and do another job or 2 and then back home
Would I be able to include the miles that I used to go back home in the middle of the day
Hi, Great Video, I keep a mileage Log, I use my own car, I have a fuel card from work for which I buy all fuel but then have personal miles deducted from my wages each month. How would i claim any rebate on a situation like this?
How do you take records of mileage?
I think they just want you to write it down, to keep a record in case they ever ask to check. It's not like a black box where you can *prove* every mile you travelled for work. Just a list of journeys, dates and miles. (I mean, you *could* take photos of your car's odometer I guess, but I don't think anyone expects that!)
Thanks for the video
My question is who sets the mileage allowance and can it be changed now fuel and costs for servicing and repairs have all skyrocketed
Mileage allowance is set by His Majesty The King. You can petition the King to change the rate of Mileage allowance.
How does it work for couriers if you do 80k miles in a year in your van as all the miles are business miles and u get paid per mile and thats how you make your income
That one stumped me for a minute, but I think I have the answer: you are being paid taxable income for doing work (whether it counts as employment or self employment) so you can save tax by claiming a mileage allowance in your Self Assessment. 10k miles at the high rate, then 70k miles at the low rate. Or, alternatively, if some of the money they give you is already tax free some how then you don't need to claim because your tax bill will already be lower. That would be one of two ways: 1) if you're an employee, your payslip showing £X income and £Y untaxed mileage allowance adding up to the amount they pay you, or 2) if you are self employed and you treat some of the money they give you as taxable income to declare in your SA and some as untaxed mileage payments from the company. Either way, your tax for the year should be based on the total you get paid MINUS the roughly £22,000 mileage allowance you'll be deducting one way or another. I think that's it. But go find an accountant if the answer comes out weird and wrong for you!
Hi. Can I ask a quick question. I'm an employee, I did 5000 miles in the tax year for the company, they paid me 12p per mile. I intend to claim to difference (33p per mile) £1650. Does this lower my tax bill by the full £1650, or by £1650 less my 45% tax rate?
Great channel, my question is if I am self employed and do use my van on which I claim mileage allowance could I still claim Vat straight from diesel receipts or have to calculate Vat from millage. Thanks,
Hi iam starting out self employed working on a site and needing to pick up 3 other people for the site, a full day is 50 miles all in per journey can i claim any of this in my tax return
Hi, can you switch from receipts to mileage claim, if in previous years you claimed for receipts? I know you can't switch from mileage to receipts, but can you switch from receipts to mileage?
Great video thank you. Quick question - my agency pays me 25p per mile when I am with a client. For that mileage claim do I then only claim 20p per mile as an expense or still the 45p?
Hi, new to all this, my work is pushing us to work from home which means I now have to visit client sites to do part of my job but theyre not paying expenses because the client site is closer than my workplace was so I have a net gain.
Can I claim milage there and back or is it just milage to the temporary site?
Hi am getting mixed answers.
I drive my own car to different places and then drive another car.
Can I claim to travel to my destination. Also I was told I can't claim mileage because am not an employee but a sole trader. I dont understand, so I can't claim for mileage. What can I claim for
If people tell you that you "can't claim mileage" they might mean that you can't claim money from the company you are working for because they only pay employees. Not sure, but that might be the confusion. Yes, for self-employed people, mileage allowance is an allowable business expense you can use to reduce your profit for tax when you are doing your Self Assessment (at least for the bit in your car - I wouldn't claim for the bit in another car because you don't pay for all the petrol and servicing and depreciation on the other car).
But if you are spending less than £1,000 on allowable business expenses, you'll probably be better off claiming the £1,000 trading income allowance instead.
Good luck!
@@AccountingTeaBreak thank you so much
Hi, a friend of mine has had a bit of a pay rise which is good, but, on the other side of the coin her work have told her she has to do 20 miles before she can claim, for the miles beyond 20, so in effect she's driving for free most days, as her work driving is less than 20 miles. Her pay increase (taxable) doesnt equate to what she was getting through expenses. Is there anything she can do to claim back those initial 20 miles which she isnt being paid for?
Yes, so she'll have a split case now: if she gets paid 45p per mile for the miles she *IS* paid for, that's tax free payment, she can just take it. And she can "claim" the 20 miles each time (45p * 20 = £9) as an allowable expense of her employment, saving her a little tax. So add up all of those 20 miles for the tax year (6th April to 5th April) and claim them.
The way I'd claim as an accountant would be to complete a Self Assessment, fill in the employment details using the P60 (or P45) for the job for the year, and then adding the mileage expense in a box in that same section. BUT she might be able to save the trouble of doing a Self Assessment by calling HMRC with the mileage figure she's claiming for the tax year and telling them that. If it's not a huge number, they might be able to issue a refund without asking for a full tax return, and maybe give her employer a tax code that means a little less of her salary is taken in tax in future months because of the miles driven. The tax code thing won't be totally accurate, she'd still need to record miles and claim them at the end of each year.
If she's a basic rate taxpayer, she'd save (or get refunded) 20% tax on each £9 (20 miles) she claimed. So £1.80 a time. If that's most days of work (if she has a delivery/travelling job) that'll add up nicely.
Good luck!
When I calculate my business mileage ( I use my own car for business) and the amount I need to claim the sums don't add up for me. The information from my P60 is on the system already and is correct, I just add the amount I am claiming for business mileage. The new online calculation shows that I have underpaid tax even though tax is deducted at source by my employer. Surely this should reduce my tax liability not increase it? When I spoke to my employer they said I need to speak to the Tax office, when I spoke to the tax office they said it was strange but to submit it anyway and they would look at it. When I did that last year and contacted them they just said the submission has been made and there was nothing they could do about it. Is there something that I am misunderstanding?
You're right that adding in the business mileage should reduce your tax bill or increase the amount HMRC owes you. If I were you, I'd remove the business mileage and check the tax calculation, then add the mileage allowance and check the tax calculation again. If the tax goes down (or a repayment goes up) then it's working and you can submit the return. PAYE tax at source can be a bit wrong, so you can put in your P60 figures and a tax return can say you owe, say, £200 in tax still. And then you add in your mileage and that goes down to, say, £100. It doesn't mean it's wrong, as long as adding the mileage is changing your tax bill in the right direction. Don't put a minus in front of expenses. (I don't think the forms let you, but in case they do, don't do that.)
And for your 2018-19 tax return, if you have mileage to add and they told you that you couldn't, I *believe* the deadline for amending a tax return is 12 months after the original deadline, so you'd still have a few weeks to send them a whole new 2018-19 tax return with 45p x X miles expenses to reduce that old tax bill and a get a few pounds back from them.
Good luck!
Hey man,
My job is about 80% driving in my own car to get to clients' houses. I have tried to 'Claim tax relief for your job expenses' but my expenses add up to over £2500, so it says I need to do a self-assessment. On the self-assessment, it says I am only owed just over £1000. can you tell me where I am going wrong? first time attempting this and it is very confusing.
Hi, thanks for the video. When you say your able to claim 45p per mile, do you mean HMRC will pay you 45p per mile to your bank account when you do the self assessment? Or do they offset the amount from your tax bill if so what happens if your profit is within the tax free allowance? Thank you for your time.
Not quite either: what they do (what you do really) is you reduce your taxable income (your profit if you are self employed, or your taxable salary if you have a PAYE job) by 45p a mile, and THAT reduces your tax bill. Either you paid all your tax through PAYE and HMRC owes you a little refund, or your Self Assessment tax bill for your self-employment is lower than it would have been without the 45p per mile claim.
So you aren't 45p per mile richer, you are richer by the tax on 45p per mile, and how much that is depends on what tax band you are in and a dozen other factors.
Good luck!
Hello - I have just got a new company car. I'm not sure whether it would be better to take the company fuel allowance or just pay for my personal mileage at 14p per mile. The BIK for the fuel allowance on this particular hybrid car is £2746. I calculate that I will be doing circa 5000 personal miles per year. With this in mind do you think that getting a fuel allowance and paying the tax on this would be more cost effective than paying the 14p a mile.......I think it will.....but I'm not an accountant. Many thanks for your help! Marc
Can't be sure without sitting in an exam hall and having terrible flashbacks to accounting exams, but it looks like it will work out close either way, which is a good answer in that it means it doesn't matter too much. Paying 14p a mile out of your own pocket might cost you £700, getting a £2,746 BIK could cost you more or less than that in tax depending on how much you earn, but is likely to be pretty similar. So if the paperwork is easy, take the allowance, and if it's a pain then just pay yourself and you'll likely not be badly stung either way. Very informal advice there, not a calculation, but I hope it helps.
@@AccountingTeaBreak Thank you kindly.
Hi there, I am employee but I need to claim back expenses of more then £2.5k per tax year, what form do I need to fill out?
For more than £2,500 you need to complete a Self Assessment for each tax year you want to claim for. Search for "register for Self Assessment" and fill in the online form to get registered, or call HMRC. Once you are set up on their system you should be able to complete a Self Assessment online. You'll need all your personal details (you'll know those) a P60 or P45 for each job for the year (you should get that in April or May after the tax year finished) and then the details of those +£2,500 expenses. Put the expenses in with the employment details and submit it. Good luck!
Hi, I am been working for the company for the last year.I did not know about this . I have only learned this recently from your channel can I claim one year back for the tax year 2020 to 2021.I mean last tax year.i was working through an umbrella company. can I still apply? Thanks
Yes, to claim for unreimbursed mileage (if you aren't already completing a Self Assessment) you should call HMRC with the details of your 2020-21 mileage and ask if they can adjust your tax bill without completing a full Self Assessment. If they say no, that you have to do a Self Assessment, then you have until the 5th of October 2021 to register for a Self Assessment, and then you have until January 2022 to complete your 6th April 2020 to 5th April 2021 Self Assessment. So it isn't too late!
(Also, if you already did a 2019-20 Self Assessment, then you have until January 2022 to submit an amendment, so if you have mileage you can claim for the year before last then you can do that too.)
Good luck!
Hi, if I have buy to let property in joint name with my wife 50/50, are we both eligible for mileage allowance, use of home allowance of £6 per week and 20%tax relief for same property?
No. The allowance is for the owner of the car and the owner of the house
Great video and it helped clear something up for me. Just a quick question, I just started on Ubereats delivering food and Amazon flex, and I had to change my insurance over from just personal use to business use, which has increased the cost a lot. Can I claim back the full insurance cost as an expense plus the 45 per mile? Thanks
I don't know for sure, I've never looked into that exact situation. My instinct says no, the 45p is supposed to cover all of those costs, including insurance, but I know a lot of people driving for Uber have crazy high insurance so some accountant out there must have written about it somewhere in a definitive way. That would be my advice: look for UK Uber driver forums, they'll have been discussing exactly this for longer than the UberEats guys. Good luck!
Hi I’m a self employed labourer and I am a passenger to a site that’s nearly finished and I think would class as temporary work place. I pay £10 a week to the driver and have worked out I have traveled 1184 miles is there any tax I can deduct or is that not an allowable tax
So you wouldn't be claiming the mileage allowance (since it isn't your car) but 1) the driver could claim the allowance and a few extra pence for taking a passenger and save some tax that way and 2) the £10 a week you are spending is a business expense, just like a bus ticket or train ticket. I was going to say that you can't claim the expense without a receipt, and I'm guessing he won't want to give you a receipt, but this page says you are allowed to claim even without a receipt: www.contractorcalculator.co.uk/receipts_contractors_claim_dispensation.aspx
So your self-employed profit comes down by £10 a week and, if it saves you 20% tax that's £100 a year, maybe more with National Insurance.
Last thing to note is that the £10 a week would probably be taxable income for the driver. It's not your job to police that, but I suppose if HMRC randomly chose you and wanted to see all your expenses, the next thing they might do is go to your driver and check if he declared the extra income that you declared as an expense. That's pretty unlikely, but there's a slim chance.
Hi could you please help me out. I need to know if it’s possible to claim tax return on expenses such as public transport to work, uniform etc if paid through PAYE. I only earn around 18k but pay out £3k in taxes each year. I’m confused?
Hi! It's complicated working out which journeys you can claim for, but the next video after this one explains which journeys are allowable expenses. Here's a link to the next video explaining which journeys you can claim for: ua-cam.com/video/3rkLIYb2Qsg/v-deo.html
Apparently you can't claim for buying uniforms but you can claim for cleaning, repairing and replacing uniforms, and you may be able to claim that back for the past four years. Here's an article from the LITRG website talking about uniforms: www.litrg.org.uk/latest-news/news/181017-employees-%E2%80%93-what-do-if-you-incur-expenses-relation-your-job. Oh, actually this page is a good explanation of some uniform tips: www.moneysavingexpert.com/reclaim/uniform-tax-refund/
Quick question, if my project is for 3-4 years duration which is considered permanent, can I then claim the difference for mileage allowance from hmrc? my current company is paying only 24p/mile. thanks a lot in advance
Hi! I don't think you get to claim, no. Since it counts as a permanent place, your travel back and forth from it can't be used to reduce your tax bill.
@@AccountingTeaBreak Appreciate your response, thank you.
@@AccountingTeaBreak Hi, just learned that my current place of work is temporary despite the length of the contract, because our address is head office in our signature and also our contract states that the project site is considered temporary. Would I now be able to claim the mileage difference from HMRC? Thank you in advance
I work for a company that pays me 12p per mile and I’ve been told that I can claim the rest from HMRC. Now will they pay me 33p per mile up to the 10,000 miles and 25p afterwards or will they just simply reduce the amount of tax that I will pay the following year ? Should I claim each month or at the end of the tax year as I do over 2,000 miles per month?
You get to "claim" the 33p difference for each of the first 10,000 miles, and if they still pay you 12p per mile for the miles beyond 10,000 then you get to "claim" 13p for each of those (25p minus 12p). And "claim" means you can put that amount in your once-a-year Self Assessment to reduce your tax bill. It won't reduce your tax bill by the amount you claim, it will reduce your taxable income by the amount you claim, which will probably reduce your tax bill by 20% (or 40%) of that amount. And if you don't need to do a Self Assessment already, it's always worth calling HMRC at the end of the tax year to see if you can just tell them your mileage claim figure because they might just make the change over the phone and either send you a small tax refund or change your tax code to take a bit less tax next year, saving you from doing the whole form. Can't promise, but it's worth a try. Good luck!
I'm self employed but solely work for one company. I use my car to drive to a depot and use a company vehicle to go to wherever the job is. Can I claim for my mileage to the depot
I wouldn't if I were you: it feels too much like a normal commute to me. But that's my gut instinct, I haven't dug into exactly that situation before and perhaps I'm wrong: as you've noticed, it's not exactly crystal clear what you can and can't claim! This part 2 video explains more about how HMRC defines a temporary place of work: ua-cam.com/video/3rkLIYb2Qsg/v-deo.html But I would not be surprised if you watched that video and didn't feel like it gave you a concrete answer to your situation. Like I say towards the end, we're away from logic and in the land of religion with this one!
Thanks for the video. I have a question: self-employed cleaners' travel. Allowable or not? Self-employed cleaners normally have a regular pattern of travel, visiting various clients on the same day every week or month. They may be based from home, but perhaps not enough to make the home a base for tax purposes.
A good question, and it's one I *hopefully* answer in the video after this one: ua-cam.com/video/3rkLIYb2Qsg/v-deo.html
In that one I talk about the 24 month rule, the 40% rule, the site-based rule... all the things that might decide if a cleaner with a particular work pattern gets to claim some (or all) of their travel. Good luck!
Thank you very much! You’re the best!
A good question! Thank you for the reply. You’re the best!
Can I (a director) claim for mileage driving from my office (in my house) to my warehouse? Or does that not count?
I don't know of a specific rule that says you can't, so if the travel meets the various rules about temporary places of work (ua-cam.com/video/3rkLIYb2Qsg/v-deo.html) then I would claim for it, yes. Good luck!
When claiming business mileage can you claim to the temporary place of work and back? So from home to the temporary place of work and then back home? Or is it just the miles to get to the temporary place of work?
Yes, absolutely, and it was bad of me not to make that clear. All those times I talk about claiming to go somewhere you should mentally add a silly voice saying "and back again!" There will be cases where you do a circular route where only one or two parts can be claimed according to these rules, but for any out and back journey the out and the back can be treated the same.
Can I claim mileage for using petrol cars, hybrid, electric cars or only for using diesel cars? If I claim mileage can I also claim repairs and servicing? Thanks
For the 45p per mile claim it doesn't matter what type of fuel the car uses, it can be diesel, petrol, hybrid or electric, or any other type of car power they come up with. And you can't claim repairs and servicing as well. (The idea of the 45p thing is that only perhaps 10p will be the cost of petrol (or maybe 1p if it's electricity) but the rest of the 45p is to make up for the wear and tear on the car, the insurance, the MOT, the servicing, the depreciation. So if you're claiming 45p per mile, you don't claim any other car running costs.)
Cheers!
@@AccountingTeaBreak Many thanks for your quick response 👍
Hi! I can find the specific answer to my question so would appreciate if you could help?
I have started working for Amazon Flex, to get to depo i drive 20 miles, then say 10 miles delivering and 10 miles driving back home, for which parts am i able to claim the £0.45p?
Also is it a waste of time as I'm going to be under £12,500 tax free allowance therefore cannot deduct? If so can I still get a reimbursement for using my own car for work? Thanks
To start with the end of your question, since you're earning less than the personal allowance threshold, it's probably not worth your time claiming it. You'd be reducing your income-for-tax by, say, a few hundred pounds, but since your income tax is £0, it wouldn't save you any money.
I guess the rest of the answer doesn't matter because of that first bit, but I would *imagine* in your situation that you'd be allowed to claim mileage for the delivery miles and maybe for the drive home at the end (assuming you don't return to the depo) but not for the morning drive to the depo since that's your typical commute. And if your employer chose to pay you 45p per mile extra for the bits of travel you can claim, you'd be allowed to claim that tax free without going over the personal allowance. But I'm pretty sure that's not how these delivery companies pay, so I'm assuming that won't be happening.
If you get payslips that have your salary plus a mileage allowance written on them, and you creep up into the basic rate of tax, come back and message me and we'll check there isn't some way to save a few pounds in tax.
Ta! B
@@AccountingTeaBreak Thank you for your help, much appreciated!
Hello, I need some help with that . As a self employed I am doing my self assessment, just wondering how exactly to claim this 45p per mile? For example if I have 1000 miles for business travel, so 1000x0.45 = £450 ? In which section of my self assessment I have to write this? Is it - Car, van and travel expenses at Allowable Business Expenses ?
If your income from self-employment is under £85,000 you just put a single expenses figure in your "Total allowable expenses" box of the self-employment section of the Self Assessment. That figure is for everything you spent on the business, and would include £450 for mileage if you drove 1000 miles. (If you earned more than £85000 then the travel expense goes in "Car, van and travel expenses", yes.) So the £450 reduces your profit, and that then saves you tax at 0% or 9% or 29% or 42% or whatever tax rate you are paying (income tax and class 4 NI). Hope that helps!
@@AccountingTeaBreak Thank you for your answer, it is very helpful. If I can ask one more. In case this tax relief should be claimed for someone who is an employee. What kind of form we have to complete then? I am also study accountancy, but no one show us how to work with this, so I am trying to teach myself by searching an information online. Thank you!
@@radostinagarkova2815 I know what you mean: accountancy training doesn't cover the practical forms, just the theory behind it! Here's the link you need: www.litrg.org.uk/tax-guides/employment/what-if-i-pay-too-much-tax#toc-how-do-i-claim-a-refund-if-i-have-spent-my-own-money-on-employment-expenses- They say you can use a form P87 to claim expenses as an employee without doing a whole Self Assessment. If the expenses are too high (or if you are doing a Self Assessment anyway for some other reason) then you put the amounts in the Self Assessment on the page devoted to that employment. Good luck!
@@AccountingTeaBreak Thank you! You are really good!
Hi, if I used husband’s car (registered for his name) for business. We are both on insurance. Can I stil claim mileage, 45p?
Hi, yes, I believe so. I've never seen anything referencing who owns the car or pays for the petrol or is on the insurance or any of that, so go ahead and claim the mileage if you're driving for work. Thanks!
I'he got a question: My husband use to work in same place since 2016 with 4 working and 4off days. He is working with same company but this company have differents shifts and Retail as Asda, Wilko,as I said he used to work 12 hours shift for Asda, but know as request from him they change him to work for 8hours per day for 5 days, he is in the same place but in different shift. Can We claim milleage allowance, because on Hmrc website they are saying that people cant claim for fuel If they go to their usual work unless its temporary it is a bit confused. Thanks in advance, by the way amazing videos ;)
Note:he is travelling daily from Nottingham to OLLERTON with his own car
I think in that situation he can't claim: HMRC have this thing they call a "site-based" approach, which means that if you change jobs/shifts/employers but you go to roughly the same place (most of your commute is the same, just the last little bit is different) then it all counts as one place of work. So people who change jobs a lot within a small area, like the centre of london or a business park, they can't claim. But it might not be exactly that for your husband. This video of mine is the first of a two-parter, and the second one talks more about what makes a place temporary or not. Here's a link, in case that other one is more helpful: ua-cam.com/video/3rkLIYb2Qsg/v-deo.html
Thanks for informative videos
Please advise can a UK limited company receive remittance say as a gift from parents in India in inr to gbp via online wired transfer and what are its tax implications compared to receiving money as a gift to a high income tax payer individual in UK ?
Ideally this money will then be used for 1st property purchase in the UK
If you can make a video will be brilliant and useful to hopefully few people 😊🙏
Many thanks
I wish I knew the answer, but I'm afraid I don't. I would worry that any income to a company would be viewed as taxable income if HMRC looked at the bank records. A gift to a person, not a company, would probably just be a gift. The only tax on personal gifts I know about is inheritance tax, and in UK the window for inheritance tax is seven years: that means if a gift is given at least seven years before the giver dies then it is outside of inheritance tax.
Sorry I don't have more detail for you, but hopefully that helps a bit!
Hey thanks for the video! Been looking for an answer and this has been the closest to an answer I can find.
I get £343 car allowance which is paid my my employer which is in my PAYE. Then I get 29.62p per mile I claim back through my employer. I do about 15k miles a year so I was wondering if for this I could be eligible for a tax return or claim the difference on what is the usual 45p for 10k and 25p thereafter.
Did you get an answer for this? I'm in a similar situation
@@Sast06 I did manage to find an answer to this.
If you pay tax and NI on your car allowance. And then receive the mileage allowance below the tax free allowance you can complete a form online on Gov website. P87 form. Or alternatively complete a self assessment you can claim back 20% days of the amount owed.
Hi There, Also looking for an answer on this. I get similar car allowance but my company only gives me 13p per mile. Do i claim the 45p from the gov or would it be 32p i would claim. I do about 8500 miles so takes me over the normal allowance so i am doing self assessment.
Thanks!
@@geordieracer7759 hi. I did find an answer on this. Assuming you do not complete axed assessment each year. There is a form you fill out after the tax year ends. Off top of my head I believe it is called a P86. It takes only a few minutes to complete on the HMRC website. You will need you total miles driven for work and total amount paid. They calculate the amount owed for you. You can claim for up to 5 years prior. What they will then do is either calculate the amount owed and pay you 20% of that as a cheque. Or add the amount owed to you new years tax code so you get the 20% equivalent as a relief on you next years tax. They send you a letter explaining this to you after you have completed the online form.
i get an annual allowance for providing a car for work, am i able to claim tax relief on the difference between the 45p a mile rate and the 10p a mile my employer actually pays me ? great videos thank you ,
I thought that was something that only happened in accounting exam questions, I didn't know anyone actually paid partial mileage! Yes, you can claim the difference, 35p a mile for the first 10,000 miles in your case. :-)
@@AccountingTeaBreak That was my question too, think its common. I have a company car allowance but my company only reimburses fuel for business travel at 12ppm, am I right in thinking that I can claim 40% tax back on the difference, I do a lot of business miles.
thanks
@@AccountingTeaBreak hi I’m still a little confused my company pays me 14p a mile I’d did 8.665 miles does this mean I can claim 31p x 8,665 this would be £2.686 is this the amount I’d get back or a % amount???
If I drove 10,000 miles for work in 2019/20 will I receive a tax rebate of £4,500 or £900? I am a 20% rate tax payer. Can I still claim for the tax year 19/20? Thanks
I'd expect £900 from them, if you're 20%. So yes, your claim of £4,500 reduces your tax bill at 20% of that. And although the deadline for completing a 2019-20 tax return was 31st Jan 2021, the deadline for amending one is one year later, so if you've already done an SA you have until Jan 2022 to amend it and get that claim. If you haven't done an SA (because you are a regular employee) there may still be a way to claim it so try calling them and explaining about your mileage and how you only just found out you could claim for it, and see if they can either sort it out over the phone (typing in one number for you to generate a refund) or if they'll insist you do a late self assessment for 2019-20. Whichever it is, for £900 it should be worth the hassle. Good luck!
@@AccountingTeaBreak thanks
Hi, I've started doing Amazon Flex on the side of my full time job (29k), and I've earned over £1000. I've kept a spreadsheet of dates, earnings and business mileage but only been recording the general area. Will this be enough evidence to keep on file when I submit my tax return.
Thanks
Mark
I *believe* so, yes. I would be very happy to have a day's mileage written down for that day's deliveries and just a general region where you were driving: "14 miles, Doncaster deliveries". It would be crazy if HMRC expected a map of every house a delivery driver visited in a day. Now I've never had HMRC audit a client's mileage record so I could be wrong - the rules were written for business men going to a single meeting in a day, so you could write down exactly where you started and stopped - but if they expect a house-by-house record of mileage for delivery drivers then you and me are starting a campaign in the press and getting all the half a million self employed delivery drivers in the UK to go on strike until HMRC back off. :-)
@@AccountingTeaBreak Haha!! I'll start drawing up that campaign banners now lol. Thank you for getting back to me.
Hi mate thanks for the great video, I have a question which I been searching for answer and never found it 😁, I’m an Uber driver I want to ask, are mileage counted as expenses only when carrying a passenger? For example if I dropped a passenger ten miles away from home late night And did feel I want to take anymore jobs, so is going back home empty counted as mileage expense? I would really appreciate you reply 🙏
I *believe* you can claim those miles, yes. You're only driving for work (even when empty) and you aren't going to or from a regular place of work, so I can't see a reason not to claim. If you stopped by the supermarket on the way home then I'd stop claiming the miles at that point, but if you go straight home from your last drop off, I don't know why you shouldn't claim. (Which is to say, there could be a reason I've never heard of, but no alarm bells are ringing in my head.) Good luck!
@@AccountingTeaBreak thanks, much appreciated mate
One question, I earn a £34k salary as an employee, I’ve just started Amazon deliveries, do I need to register as self employed if I earn less than £1000 in the year?
No, if your £34k salary is a PAYE and payslips and P60s and class 1 NI and all that formal stuff *salary* (rather than being another type of self-employment) then the £1,000 trading allowance protects you from ever having to register for the amazon deliveries. You're sort of the person that allowance was designed for: people with a job and a side gig who would have had to do a full Self Assessment for a small amount of income. Just keep track of your income so you notice if it goes over £1,000.
@@AccountingTeaBreak brilliant, thank you for your help. I’ve been hearing a mixture of answers lol
Thank you so much for this explanation. I really appreciate this
Hi there, as a driving instructor, why am I not allowed to claim the mileage rate? As you’ve stated in this video it’s much easier to calculate this way. Many thanks in advance.
Aren't you allowed to claim 45p? If you've found somewhere that says you shouldn't claim it, it might be that because your job is so much about your car (you work in and with it, rather than just using it to get from A to B) that you might benefit from doing a more complicated method that lets you claim a higher expense. Since most driving instructors are self-employed, this might be something people talk about online in forums. (I've never looked into it, so I don't have any detailed advice.)
I think, if you can find an accountant who has several driving instructor clients it would be worth paying them to help at least for one year because if they know a method that lets you claim more of your vehicle cost that might really bring down your profit figure and save you tax. And maybe when you speak to one they will just say, "claim 45p per mile" in which case you know how to do that yourself.
Good luck!
@@AccountingTeaBreak Thank you for the quick & long reply. On the GOV website (link below) it says that Taxi Cab Drivers & Driving Instructors can’t claim the mileage rate - I’m baffled as to why we are singled out.
www.gov.uk/simpler-income-tax-simplified-expenses/vehicles-
@@rawdah786 Oh yes, so I see. I wish they explained it a bit better there. If I had to guess it is probably because the vehicle was built for a job: it's the taxi and the dual control car, rather than the job you do in the vehicle, that matters. Good luck with the claims!
@@AccountingTeaBreak Thank you 👍🏼
Hi I run my own car doing approx 25k miles per year. My employer provides me with a fuel card. How does this work with regard to claiming mileage allowance and claiming tax relief from HMRC
You've got me stumped there. It's a good question. If the answer were fair, it would be "whatever mileage allowance claim you could make for 25k miles, minus the cost of the petrol paid by your employer." But I can't promise the answer is fair. I can't see anyone online explaining this exact situation. The nearest I can find to support that interpretation is a bit at this link: www.gov.uk/expenses-and-benefits-business-travel-mileage/rules-for-tax where it says "your employee will be able to get tax relief (called Mileage Allowance Relief, or MAR) on the unused balance of the approved amount." So if your claim was for exactly 25,000 miles, that would be an expense (for tax relief) of £8250. If your company fuel card bought £4000 of petrol, then the difference to claim is £4250. But I can't see anything positively saying that is a reasonable way of doing it. If you bought the petrol on your own card and your company paid you back for it the maths would be the same and I'm confident you would be able to claim it, so the only risk is if there is some obscure court case that says the use of a fuel card prevents you from claiming any MAR. Probably a risk you're willing to take if the tax you save is coming up on £1,000 at basic rate!
Very informative thank you
Interesting hypothetical. Let's say you was a self employed takeaway driver, and earnt £12,000 (£1,000pm) in a year. You would owe no tax, just NICs. But you would inevitably rack up alot of miles in a year. Let's say you did 9,500 miles at 45p that's about £4,200. A takeaway is never going to give you that, and you owe no tax as you earnt too little.
Would the Taxman then give you the money, or does it just reduce the net income to a lower (still untaxed) amount?
Plot Twist: I'm a broke ass takeaway driver
@@paulwisdom5383Ha! Huge reveal, the killer was in the back of the delivery vehicle the whole time! And he was filling in your Self Assessment for you!
But yeah, I think you've got it right: the 45p allowable expense reduces your self employed profit which would not help much. Going from £12,000 profit to £7,800 profit would save you a little Class 4 NI (which starts at a lower threshold) but once you are below that threshold there's little benefit in saving even more. (I mean, theoretically it could help at some point, but that would be a very rare situation.)
2:32 dude … that swallowing sound ugh
Hi this is fantastic thanks for the video! I have a question - if I have recently bought a car in the last financial year...how much of the car (if any) can I claim? And if I can claim, would I then claim receipts for fuel rather than 45p per mile? Look forward to hearing back! Many thanks, Ben 🎷
I'm gonna be honest: claiming for a vehicle as a full business expense is complicated as hell. Totally worth doing if, say, you're in the construction trade and you buy a double-cab-pickup, but claiming for a normal car involves the business claiming it as an expense bit-by-bit over several years, and then there being a "benefit in kind" to you for your private use of the car and that means tax on you, and how much tax depends on the fuel-efficiency of the car (that's why car reviews talk about g/km of CO2: they are talking to the company car brigade, who will be allowed to choose a company car and pay tax based on the fuel efficiency of it. It's fine if you run a huge company and have an HR team to deal with that junk, but unless you have a trade vehicle like the aforementioned double-cab-pickup I would stick with claiming the 45p per mile instead.
Perfect 👌🏼 thanks for your time and response :)