I went on a Tax course and mileage V vehicle costs and fuel were discussed briefly. The mileage 40p/mile includes an amount towards depreciation, insurance etc and there is no need to keep petrol receipts for this claim. The other costs you can claim are for insurance, road tax and fuel as well as depreciation. You need to have vaulations and receipts to claim these.
The example used on the course was a plumber who used his wife's car for "300 business miles" @ 40p/mile (£120) and it was suggested by the tutor that this was to price up jobs after he had finished the physical day's work. He had bought a van which was a tax deductable asset (£7650) and claimed additional van costs of insurance, road tax and diesel (£9803). We were told it doesn't matter which you claim because they work out at a similar amount for most people, but to be careful because you can only claim for receipts if you actually have receipts.
At no stage was it said that he (or we) have to be going from one work location to another. Why are they using this example of the wife's car if we can't claim mileage? The tutor said that this mileage would be from home.
My mate's accountant has claimed for things that he hasn't got or done eg suit dry cleaning so doesn't have a receipt for - and the accountant laughed at him when he pointed this out. Maybe Pill Pusher's accountant is just as bad or at least wrong? - I don't know!
How do we avoid being done for tax evasion when they confuse the Heck out of us? Will the next step be to feed us to the Society for striking off?
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