Claiming For Mileage?

Discussion in 'Managing Your Business' started by sam walton, Sep 26, 2012.

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  1. sam walton

    sam walton Guest

    Hi lads,
    sorry if I seem a bit of a moron, but what is all this 45p for mileage about.
    I am new to this world of window cleaning, can someone explain (simply) what it is.
    Thanks in anticipation.
    Geordie sam.
    Howay the lads.
     
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  2. Iain

    Iain Guru
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    Keep a record of the mileage you do that's purely for business. For every mile that you drive, you can take 45p from your business account. The rate is only 45p for the first 10,000 miles. After this, the rate changes to 25p (I think).

    The record you keep has to be incredibly accurate and state the postcode of where the journey begins and where the journey ends, the amount if miles that you drove and the reason for the journey.

    Just make a simple excel template and use different tabs for different months.

    Tax man can't touch you on this but you should declare it in your tax return anyway.

    Here's a template for the mileage form.
     
  3. M.K Cleaners.co.uk

    M.K Cleaners.co.uk Grand Master
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    It just put it all through.
     
  4. Iain

    Iain Guru
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    if the vehicle is owned by the business then that's fine.
     
  5. M.K Cleaners.co.uk

    M.K Cleaners.co.uk Grand Master
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    Yeah. I take it when its not you have to do it 45 per mile thing?
     
  6. windyman

    windyman Well-Known Member
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    There are 2 ways to claim vehicle expenses.

    The 45p per mile way....

    Or you can claim a percentage of all motoring costs (fuel, insurance, tax, MOTs, repairs). If you use your vehicle for work and pleasure, let's say it's 50/50, you can only claim 50% of these costs. If it's solely a work vehicle you can claim 100%.

    Worth calculating both to see which saves you most money.

    If you do low mileage and/or have an older vehicle, the 45p per mile way probably isn't as cost effective.

    If doing high miles and have a newer vehicle, 45p pm may be the way to go.
     
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