Reply to: Can I claim mileage (transport) if travel by public transport

[indosmk]

You need to keep your fuel VAT receipts to prove you bought enough fuel to cover the mileage you claim.

And if you drive an EV? Are you screwed in that case?

[Craig@Clarity]

But as we've been saying the rate is per mile. Evidence of buying petrol doesn't prove you did the mileage.



I'm happy to follow HMRC's advice.

You're spot on. Best way to log mileage is to keep a simple log. Receipts wise, I was referring to all other expenses.

Keeping petrol receipts to cover the VAT is only really relevant if you are not on the flat rate VAT scheme. On the standard rate scheme, you can claim back a small percentage of VAT on mileage.

[VectraMan]

You should keep receipts even if you don't claim VAT back from HMRC as it is evidence that your incurred the expense in the first place.

But as we've been saying the rate is per mile. Evidence of buying petrol doesn't prove you did the mileage.

Records you must keep
You need to keep records of dates, mileage and details of all work journeys. Your employer needs this information to make expenses payments to you. You also need them to get any Mileage Allowance Relief.

I'm happy to follow HMRC's advice.

[TykeMerc]

BTW you only need receipts to reclaim VAT, unless I've been doing it wrong for 5 years.

If you got a Tax inspection (not VAT, although relevant for that too) then you could be asked to produce fuel receipts to support your mileage log and expense claims.

[Craig@Clarity]

BTW you only need receipts to reclaim VAT, unless I've been doing it wrong for 5 years.

You should keep receipts even if you don't claim VAT back from HMRC as it is evidence that your incurred the expense in the first place.

[Lumiere]

BTW you only need receipts to reclaim VAT, unless I've been doing it wrong for 5 years.

WHS

[VectraMan]

It costs me £36 per day in petrol to get to client co in my S2000 twice a week, but the expense is ~£80. Which no matter how you look at it is a lot more, even in a silly sports car. But of course I only really get 21% of the £80.

When I did my first gig (coincidentally with the same client I'm working for now), I was with an umbrella, and with the saving on the 40% tax+EENI+ERNI , 40p per mile meant I was slightly better off driving 200 miles a day than if the client had been next door.

BTW you only need receipts to reclaim VAT, unless I've been doing it wrong for 5 years.

[Wanderer]

Well it depends doesn't it... your car is going to depreciate anyway. Should mileage cover all the costs of running a car, when it is not required to only have business use?

Absolutely. If you do 10,000 private miles and 10,000 business miles then the extra mileage is going to devalue your vehicle faster, not to mention the extra servicing, insurance costs, tyres etc and the business should cover that cost.

[Scrag Meister]

Not really. If you consider the money in the company is yours and would be paid as dividends if not paid as mileage claim. Then in actual fact you are only saving the amount of the claim that would have been tax had it been paid as dividend.

Despite having a very efficient car (56mpg) I find this amount is less than the cost of the diesel.

What??? 56 * 40p = £22. Where are you buying your fuel??

[escapeUK]

Though even now 40p is quite reasonable IMO... it's more the case that 8 years ago these rates were a money tree.

Not really. If you consider the money in the company is yours and would be paid as dividends if not paid as mileage claim. Then in actual fact you are only saving the amount of the claim that would have been tax had it been paid as dividend.

Despite having a very efficient car (56mpg) I find this amount is less than the cost of the diesel.

[malvolio]

Well it depends doesn't it... your car is going to depreciate anyway. Should mileage cover all the costs of running a car, when it is not required to only have business use?

Ermm, yes, actually...

It's to cover the business proporertion of fuel, servicing, insurance, replacements like tyres and wiper blades, depreciation and lost interest on the capital you've laid out to buy it. I read someherre that the average 1.6 family car now costs around 52ppm.

[Craig@Clarity]

Hi, my understanding is that if I use public transport, I can't claim mileage, but only can claim expense against actual transportation cost. Is this correct? If so I need to keep all public transport receipt ?

Thanks

Yes you are correct. Provided that you are working at a temporary workplace, you can claim the actual cost of the public transport. Try and get a receipt where possible just in case HMRC ever need you to back up your expenses claim. If you are taking the train you could claim the cost of driving to the train station as well as car parking costs.

[d000hg]

Well it depends doesn't it... your car is going to depreciate anyway. Should mileage cover all the costs of running a car, when it is not required to only have business use?

[xoggoth]

Given average depreciation of a car the 40p is just adequate if you can get lowish cost insurance and have no major repair bills. 25p certainly isn't.

[d000hg]

Though even now 40p is quite reasonable IMO... it's more the case that 8 years ago these rates were a money tree.