Hiya!!
Just want some guidance on mileage cost/running costs of vehicles used as a sole trader.
My husband has been claiming his receipts for fuel, insurance, tax and repairs, however we feel he may be better of claiming 40p per mile. Am I right that if mileage is claimed, no other vehicle expenses can be?
Thanks for you help!
Stacey
And the 45p per mile is only for the first 10k and then 25p per mile thereafter.
HOWEVER... I notice that you state that you are a sole trader so there's a big proviso attached to any advice regarding mileage allowances.
If your turnover is more than the VAT registration threshold then the option of a mileage allowance ceases to be open to you the first time you change your car after going over the VAT threshhold.
There is no limit to turnover for directors of limited companies... One more reason to incorporate?
For more information on this see the bottom of page 3 of HS222 where it's talking about use of mileage rates to calculate motor expenses.
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Just to add to Shamus' advice, there is one other downer:
The mileage scheme you use for your husband has to be applied consistently year on year. You can only change from "actual cost basis" to "mileage at 45p/mile" (or vice versa) when you replace the vehicle you're using, not whenever if looks to be advantageous.
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
