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Freelancers - Good tax Saving Tip!

Discussion in 'General Business Forum:' started by CSparkes, Oct 6, 2010.

  1. CSparkes

    CSparkes Senior Member

    Not sure if many of you are aware of a good little tax saving tip. The 40p per mile cost to you!

    If your car is a personal car and you use to get to clients/buisness and is therefore used for "business" aslong as this place is not commuting miles. I.e your house to your workplace then you can claim 40p per miles upto 10,000 miles and then 25p per mile afterwards as a cost to you.

    So if you do 1000 miles per year as a freelancer, it reduces your profit by £400 therefore you don't pay tax on that £400.

    It can be quite handy if you are using your private car for your work!
     
  2. Greg

    Greg Active Member

    Good tip Craig, assume you just need to keep hold of all fuel receipts for your records?

    Along the same lines, is claiming back some of your expenses if you work from a home office, as long as the room is entirely dedicated to your business, I believe you can claim expenses on a % basis for electricity, water, broadband, etc.
     
  3. CSparkes

    CSparkes Senior Member

    Nope no fuel reciepets needed.

    You just have to be able to prove mileage. So if for a project you have to travel 30 miles to client so 60 mile round trip, and see them 5 times, you just have to say you saw them on those dates should you be asked. 300 mile total = £120 off profit.

    I have been using it and was able to claim 2 years back of wrong taxes figures and got a tax rebate! So know its fully legit!

    As i get paid by flexi to go to kite events, it saves me a fortune on tax!
     
  4. Greg

    Greg Active Member

    Ahh, interesting, had always assumed you'd then need fuel receipts.
     
  5. CSparkes

    CSparkes Senior Member

    Nah you don't. Here is the text from tax office!

    [​IMG]

    And this is the form.

    [​IMG]

    So really is very easy to claim!
     

    Attached Files:

  6. TomStutt

    TomStutt Senior Member

    do you just put that in as an expense when you do your tax return
     
  7. CSparkes

    CSparkes Senior Member

    Yeap, put it on the page where you put total income, and then the individual losses.

    If memory serves me right, its all in one box unless costs are over 10,000 i think? May be wrong on that.
     
  8. Greg

    Greg Active Member

    Thanks Craig, I don't use my car a great deal for work, but will still be worth claiming expenses on the times I do :)

    It might be worth collating these sorts of tips in a sticky thread within this forum? Along with your post regarding Self-Employed vs. Limited, I think it could be a handy/quick resource or even FAQ for setting up as a freelancer.
     
  9. Good tip Craig.

    I just use a notebook which I keep in the car, and note down; date, mileage, town/address and clients name if applicable. Started doing it 3 years ago, and am now in the habit. Defnitely worth doing!
     
  10. Thomzo

    Thomzo Member

    I'm afraid you do. There was a case in the European Parliament (wouldn't you have guessed it) that said that you do need to keep the receipts. Which is a bit stupid as the fuel receipts won't come to the full 40p a mile.
     

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