business mileage - two jobs
Discussion
I have two jobs- one I work as a contractor through an umbrella company. For my mileage I submit the petrol VAT receipt and total up my mileage.
Easy 40p a mile for 10k then 24p a mile after... I will be clocking up 80 miles+ a day so easily over 10,000 miles a year
But my second job that i've recently started (my own little sideline business ) occasionally requires me to travel so what should I be paying myself?
can I do another 10k miles for that business and charge 40p a mile?
Easy 40p a mile for 10k then 24p a mile after... I will be clocking up 80 miles+ a day so easily over 10,000 miles a year
But my second job that i've recently started (my own little sideline business ) occasionally requires me to travel so what should I be paying myself?
can I do another 10k miles for that business and charge 40p a mile?
There are two techniques that can be used.
The normal way motor expenses are claimed in a business is that all business related motor expenses are put through the business accounts. These expenses are based on the actual physical costs i.e. fuel vouchers, vehicle repairs, insurance, road tax etc etc.
A sole trader can only claim expenses that have been incurred "wholly and exclusively for the purpose of the trade" so an attempt MUST be made to ensure that the expenses claimed in the business accounts are the business related motoring costs only.
This is usually achieved by making a note of the actual business mileage incurred in the accounting year.
The business element of the motoring costs are then calculated by apportioning the total costs for the year by comparing the business mileage to the total mileage.
Capital Allowances can also be claimed on the vehicle - subject to a maximum claim of £3,000 per annum. The Capital Allowance rate claimable on cars is 25% per annum. Like the general motoring costs, the Capital Allowances should also be restricted by the business mileage versus total mileage ratio.
A simpler alternative is to ignore all the above a put through a 40p/25p per mile claim instead - based on the business mileage for your sole-trading activity.
The normal way motor expenses are claimed in a business is that all business related motor expenses are put through the business accounts. These expenses are based on the actual physical costs i.e. fuel vouchers, vehicle repairs, insurance, road tax etc etc.
A sole trader can only claim expenses that have been incurred "wholly and exclusively for the purpose of the trade" so an attempt MUST be made to ensure that the expenses claimed in the business accounts are the business related motoring costs only.
This is usually achieved by making a note of the actual business mileage incurred in the accounting year.
The business element of the motoring costs are then calculated by apportioning the total costs for the year by comparing the business mileage to the total mileage.
Capital Allowances can also be claimed on the vehicle - subject to a maximum claim of £3,000 per annum. The Capital Allowance rate claimable on cars is 25% per annum. Like the general motoring costs, the Capital Allowances should also be restricted by the business mileage versus total mileage ratio.
A simpler alternative is to ignore all the above a put through a 40p/25p per mile claim instead - based on the business mileage for your sole-trading activity.
Edited by Eric Mc on Tuesday 19th February 14:02
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