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#1 06-05-07 15:56:45

confused
Verified Member
From: Milton Keynes
Registered: 15-09-05
Posts: 1,307
Website

Another mileage question.

Ello, which is prefferable;

Adding up the mileage and claiming the 40p/mile

or

Using the IRs recomended 18 miles per lesson and then claiming 40p/mile?

just thinking which is best as some lessons are more then 18 and others are less.


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06-05-07 15:56:45

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Re: Another mileage question.




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#2 06-05-07 19:32:42

AlphaBob
Verified Member
From: Hampshire
Registered: 05-01-05
Posts: 121

Re: Another mileage question.

Hi Confused,

Spoke to HM Revenue & Customs, tax people to you and me last week re claiming mileage allowances as I am going from leasing a car to purchasing one.  I was advised that as an ADI the mileage rate method is preferable. So for the tax year 2007-2008 you claim 40p per business mile for the first 10,000 miles, rate per mile for any further miles is 25p.  Therefore if you do 20,000 miles a year say, claim £4000 for first 10,000 and then £2500 for the second 10,000.  Total £6500.
The other option is the motor expenses actual cost method but that is not a mileage method. I have info in front of me from tax people and there is no mention of the 18 miles a lesson average.


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#3 07-05-07 19:38:29

Carl
Guest

Re: Another mileage question.

I don't really have that problem as I record all the business mileage I do on a lesson by lesson basis. I can do quite a bit more than 18 miles per lesson, it's averaging out at 20 miles per hour worked and that doesn't even include travelling which can be as high as 18 miles each way depending on the area.

I just proportion the costs accordingly and then work out the Capital Allowances for the car.

Carl


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#4 07-05-07 20:02:38

comedrivewithme
Verified Member
From: Treorchy, Rhondda, South Wales
Registered: 28-11-06
Posts: 674
Website

Re: Another mileage question.

I hope you are claiming for the travelling as well.


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    Treorchy, Rhondda.

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#5 07-05-07 22:49:11

captain_compass
Verified Member
From: Shropshire
Registered: 20-01-05
Posts: 103
Website

Re: Another mileage question.

I offset all my motor expenses against tax - insurance petrol tyres servicing depreciation etc etc, and my accountant then allows 5% for personal use of the car.  Hasn't been a problem so far fingers crossed!!

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#6 26-05-07 07:34:56

Mr..B
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From: garden of england
Registered: 02-01-06
Posts: 57

Re: Another mileage question.

if your headboard is on,your advertising.....

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#7 09-06-07 20:55:08

Flossie
Verified Member
Registered: 09-06-07
Posts: 53

Re: Another mileage question.

Hello everyone!  Sorry that I'm querying an old topic but I've just joined up!  After reading the last threads, does that mean the tax office expect about 18 miles per hour lesson charging at 40 per mile for the first 10,000?  How much are people charging per month working full time?  I only claimed £200 last month but am sure it's more.  Am worried about claiming anymore.

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#8 09-06-07 21:56:51

Russ
Verified Member
Registered: 18-07-04
Posts: 939
Website

Re: Another mileage question.

It all depends on your circumstances.

I bought an 2nd hand auto april 06, paid 6300.
in 1st year i can claim 40% cost depreciation,, all fuel 1600per month at 29 mpg 4.36 gal =240 monthx 12=2880.
on top all insurance,road tax, service, int on loan,etc.
if i use the 40p + 25p i cannot claim any of the above my workings out mean i am £400 under out goings.
but if i run the car for 3 yrs doing the same milage my claim is the same each yr, so infact after yr 1 i am better off.

russ

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#9 21-06-07 20:42:47

comedrivewithme
Verified Member
From: Treorchy, Rhondda, South Wales
Registered: 28-11-06
Posts: 674
Website

Re: Another mileage question.

This is what I'm considering at the moment.

I bought my car when it was 15 months old, with 2,500 miles on the clock. It is now 2 years and 9 months old and has 36,000 miles on the clock.  At the moment it is around average mileage.

If I sell now and buy another 18 month old with low mileage, It will already have depreciated a couple of thousand and I can still claim 40% (of the price I paid)for the first year I own the car. I then sell a 2.5 year old car with reasonable mileage.  In year 2 you can only claim 25% of a lower figure.  If you pay £7,000 for your car, In year one you can claim £2,800  in year 2 it is down to around £900.

So get rid and buy another car.


Give yourself independenc, learn to drive!
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    Treorchy, Rhondda.

I see friends shaking hands, saying
"how do you do". 
They're really saying
"I love you" (Louie Armstrong)

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#10 22-06-07 08:10:13

Target
Verified Member
From: Winchmore Hill North London
Registered: 17-01-05
Posts: 5,695
Website

Re: Another mileage question.

I offset all my motor expenses against tax - insurance petrol tyres servicing depreciation etc etc, and my accountant then allows 5% for personal use of the car.  Hasn't been a problem so far fingers crossed!!

This is the same method I use. Perscentage proportions with all the bills which are mixed between personal and private. Internet. Landline. Car. Etc etc.

Accountants I'm sure would advise me to change.


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#11 07-07-07 22:17:17

EKAL
Verified Member
From: East Kilbride
Registered: 23-04-06
Posts: 1,050
Website

Re: Another mileage question.

where do you peeps get your info from on the 40% etc?

I am working weekends with a franchise just now but may go Indy in the new year, I have picked up bits N bobs here and there, but cant find a "definitive" thread or web site to give ALL the info I need on self employment and what i can and cannot claim..............


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#12 17-07-07 21:05:33

comedrivewithme
Verified Member
From: Treorchy, Rhondda, South Wales
Registered: 28-11-06
Posts: 674
Website

Re: Another mileage question.

Your local Tax ofice run work shops for the self employed.  They are free and worth going to.


Give yourself independenc, learn to drive!
www.Comedrivewithme.com
    Treorchy, Rhondda.

I see friends shaking hands, saying
"how do you do". 
They're really saying
"I love you" (Louie Armstrong)

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#13 18-07-07 18:12:22

Colin Martin
Verified Member
From: Southsea
Registered: 21-01-05
Posts: 2,465
Website

Re: Another mileage question.

I have been doing the mileage claim for some time now and try to dispose of the car before I have done 10,000 miles. It can work out better in certain circumstances but do your calculations carefully. A lot depends on the value of your car new, what you sell it for, how many miles you do and the costs in between.

I have never split private and business, the IR have always been happy with this as they have always been told.


Colin Martin
The Bright Red L http://thebrightredl.com
Instructor Apps http://drivinginstructorapps.co.uk
Apps Video channel https://www.youtube.com/colinbythesea

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