You are not logged in.

#1 21-11-16 20:53:06

Chr1sgsi
Member
Registered: 18-11-16
Posts: 6

Tax deductions

Evening everyone. As a newbie and just commenced my instructor training i am trying to do as much research into running my own business before i actually start to do it for real. So ive got a couple of starter questions that i need help with

1. As an example would i deduct the following costs from my monthly profit before working out my tax. The main costs im interested in are Car lease, mileage, franchise fee. If these costs are £600 per month and i recieve £1600 in lesson fees would i just pay tax on £1000.

Any help gratefully recieved.

Offline

21-11-16 20:53:06

AdBot
Google AdSense Posting Bot

Re: Tax deductions




Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

#2 22-11-16 07:14:46

kaf
Verified Member
From: Wiltshire
Registered: 05-08-07
Posts: 3,328
Website

Re: Tax deductions

In a word, yes.
Once you have commenced your business and notified hard that you are self employed, anything nesessary and exclusively for your business is tax deductible.
Most common are.
Fuel
Lease
Franchise fee
Car tax
Insurance
Mobile phone contract.
Car servicing
Interest on car finance.
Allowance for using home as an office.


But if anything is also used privately, as well as for business, then you can only claim a proportion which is for business use.

Offline

#3 22-11-16 08:38:30

Roadmaster
Verified Member
Registered: 04-03-04
Posts: 5,670

Re: Tax deductions

You can claim per business mileage which lumps together all your motoring expenses (insurance, maintenance, fuel etc)   Depending on your mileage it might work out better.   Business mileage is 45p for first 10,000 miles, then 25p per mile afterwards.   

You neeed to do some calculations to find which is best for you.

Offline


Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 713

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 714

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

#4 22-11-16 13:06:59

Chr1sgsi
Member
Registered: 18-11-16
Posts: 6

Re: Tax deductions

kaf wrote:

In a word, yes.
Once you have commenced your business and notified hard that you are self employed, anything nesessary and exclusively for your business is tax deductible.
Most common are.
Fuel
Lease
Franchise fee
Car tax
Insurance
Mobile phone contract.
Car servicing
Interest on car finance.
Allowance for using home as an office.


But if anything is also used privately, as well as for business, then you can only claim a proportion which is for business use.

Thanks for the swift and useful reply. As regards the vehicle in your opinion which is the best way to go, finance or lease. Also if it was leased would the full monthly lease ammount be tax deductable as apose to just the interest part of a finance agreement.

Regards
Chris

Offline


Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 713

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 714

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

#5 22-11-16 13:17:13

Chr1sgsi
Member
Registered: 18-11-16
Posts: 6

Re: Tax deductions

Roadmaster wrote:

You can claim per business mileage which lumps together all your motoring expenses (insurance, maintenance, fuel etc)   Depending on your mileage it might work out better.   Business mileage is 45p for first 10,000 miles, then 25p per mile afterwards.   

You neeed to do some calculations to find which is best for you.

Hi. Thanks for the reply. If i'm correct then 20000 business miles per year would be £7500 taken off my earnings before tax. I understand that this would cover all aspects of the car i.e fuel, servicing, tax, insurance, breakdown cover and lease payment

Regards

Offline


Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 713

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 714

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

#6 22-11-16 14:41:22

Roadmaster
Verified Member
Registered: 04-03-04
Posts: 5,670

Re: Tax deductions

Chr1sgsi wrote:
Roadmaster wrote:

You can claim per business mileage which lumps together all your motoring expenses (insurance, maintenance, fuel etc)   Depending on your mileage it might work out better.   Business mileage is 45p for first 10,000 miles, then 25p per mile afterwards.   

You neeed to do some calculations to find which is best for you.

Hi. Thanks for the reply. If i'm correct then 20000 business miles per year would be £7500 taken off my earnings before tax. I understand that this would cover all aspects of the car i.e fuel, servicing, tax, insurance, breakdown cover and lease payment

Regards

Yes.  Or finance/purchase of the car if you buy it.   

So if you use your figure above, £1600 per month income,  minus the £7500 (plus any other expenses), then take into account your  personal tax allowance of £11000 you would only pay tax on around £700.

Offline


Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 713

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 714

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home2/matthutc/public_html/drivertrainingtoday.co.uk/include/parser.php on line 787

#7 22-11-16 15:05:06

kaf
Verified Member
From: Wiltshire
Registered: 05-08-07
Posts: 3,328
Website

Re: Tax deductions

Chr1sgsi wrote:
kaf wrote:

In a word, yes.
Once you have commenced your business and notified hard that you are self employed, anything nesessary and exclusively for your business is tax deductible.
Most common are.
Fuel
Lease
Franchise fee
Car tax
Insurance
Mobile phone contract.
Car servicing
Interest on car finance.
Allowance for using home as an office.


But if anything is also used privately, as well as for business, then you can only claim a proportion which is for business use.

Thanks for the swift and useful reply. As regards the vehicle in your opinion which is the best way to go, finance or lease. Also if it was leased would the full monthly lease ammount be tax deductable as apose to just the interest part of a finance agreement.

Regards
Chris

That depends on your personal situation.
Buying the car cash, is usually the cheapest way. But you are liable for repairs service etc.
Buying via finance, well, depends on the price and finance deal. Also, some finance companies will not allow use of a PCP for driving instruction purposes, so get in writing that it is ok before committing to a car.
Leasing, you get a new car at end of each lease, if that's what you want. All servicing etc is normally included. But somebody is making a profit out of the deal other then you, which has to say something about the cost! Full cost of lease is allowable against tax.
Leasing for 9-12 months might well be a good bet when starting out. Then if the business doesn't work out, you aren't stuck with a car you don't want.

Last edited by kaf (22-11-16 15:05:59)

Offline

#8 22-11-16 16:39:39

Triplea35
Verified Member
Registered: 28-09-12
Posts: 505

Re: Tax deductions

HMRC expect your net profit (total income minus allowable expenses) to be between 39% and 59% of your total income. This is called the 'benchmark' and is based on the general performance of the instructor industry. There may be genuine reasons to be out of the range, such as at startup, but are more likely to be subject to closer scrutiny by HMRC.

In respect of leasing, a high annual mileage (30k +) generally makes it less cost effective with excess mileage charges etc. Only exception I have seen lately is AA/BSM who do one year car only lease deals with a high mileage allowance of 48K for £358 per month and which includes full insurance, recovery and car replacement.

Offline

Board footer

Powered by FluxBB. Developed by Matt Hutchings