Mileage costs?
Discussion
Hey everyone.
I currently freelance. With it being the quieter part of the year in my sector, I tend to have to travel away alot more for work which means daft mileage.
I charge mileage at 45p per mile one way, my question is, with the mileage allowance thta hasn't changed in years to reflect the current cost of fuel and increased cost of repairs on cars, could I charge more per mile to account for this because 45p isn't a realistic reflection of the current climate at all.
I currently freelance. With it being the quieter part of the year in my sector, I tend to have to travel away alot more for work which means daft mileage.
I charge mileage at 45p per mile one way, my question is, with the mileage allowance thta hasn't changed in years to reflect the current cost of fuel and increased cost of repairs on cars, could I charge more per mile to account for this because 45p isn't a realistic reflection of the current climate at all.
NordicCrankShaft said:
Hey everyone.
I currently freelance. With it being the quieter part of the year in my sector, I tend to have to travel away alot more for work which means daft mileage.
I charge mileage at 45p per mile one way, my question is, with the mileage allowance thta hasn't changed in years to reflect the current cost of fuel and increased cost of repairs on cars, could I charge more per mile to account for this because 45p isn't a realistic reflection of the current climate at all.
My understanding is that you can charge whatever rate you like, but if you get paid more that the HMRC rate you will need to account for this in your tax returns, and pay the appropriate taxes that go with it.I currently freelance. With it being the quieter part of the year in my sector, I tend to have to travel away alot more for work which means daft mileage.
I charge mileage at 45p per mile one way, my question is, with the mileage allowance thta hasn't changed in years to reflect the current cost of fuel and increased cost of repairs on cars, could I charge more per mile to account for this because 45p isn't a realistic reflection of the current climate at all.
Are you a sole trader, or a limited company?
As Sheepshanks said, you can charge whatever the client will pay. Agree this in the contract for your services.
Charging is different to paying yourself.
As a sole trader the normal principle is you claim back the costs associated with the miles done, so, if you do 50% business miles then you claim back 50% of the annual costs of the vehicle.
If a limited company and it is your own car then you can pay yourself any reasonable amount and your personal tax would need adjusting if different than the HMRC figures. The HMRC 45/25p mile is what they will accept without a personal tax benefit if being paid this as a company payment to yourself for using your own car.
If it is a company car then normal company car rules apply.
As Sheepshanks said, you can charge whatever the client will pay. Agree this in the contract for your services.
Charging is different to paying yourself.
As a sole trader the normal principle is you claim back the costs associated with the miles done, so, if you do 50% business miles then you claim back 50% of the annual costs of the vehicle.
If a limited company and it is your own car then you can pay yourself any reasonable amount and your personal tax would need adjusting if different than the HMRC figures. The HMRC 45/25p mile is what they will accept without a personal tax benefit if being paid this as a company payment to yourself for using your own car.
If it is a company car then normal company car rules apply.
MustangGT said:
As a sole trader the normal principle is you claim back the costs associated with the miles done, so, if you do 50% business miles then you claim back 50% of the annual costs of the vehicle.
Mileage was just another entry on the invoice for me, and a proportion of all car running costs went through the business as well.MustangGT said:
As a sole trader the normal principle is you claim back the costs associated with the miles done, so, if you do 50% business miles then you claim back 50% of the annual costs of the vehicle.
Mileage was just another entry on the invoice for me, and a proportion of all car running costs went through the business as well.Gassing Station | Business | Top of Page | What's New | My Stuff