just a quick question guys, How do you work out your Travel Expense?
Travel Expense
just a quick question guys, How do you work out your Travel Expense?
Are you referring to using your car or van for business?Originally Posted by worldofparties
Thats what I pay my accountant to do??
40p a mile up to 10,000 for using own vehicle for business mileage. No other receipts required.
www.nkentertainment.co.uk
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www.michaelmooble.co.uk
75% of my van use is for business purposes, so 75% of my diesel, tax, insurance, MOT, servicing & repairs are travelling expenses.
Simple!
Last time I checked, the figure was actually just over 80%, but I still work to 75% as it's easier.
Uh..."You have been fined 99 bicycle clips, go directly to jail, do not collect 200 pounds... who's that naughty boy there?"
It depends on your individual circumstances and in particular whom owns the vehicle. The 40p per mile up to 10,000 miles (and 25p per mile thereafter IIRC) relates to business usage of a privately owned vehicle.
If however the business owns the vehicle and it is only used for business use, then the expenses are quite simply all invoices appertaining to the running of the vehicle (servicing, repairs, licences, fuel & sundries) plus annual depreciation (typically 25% reducing balance) of the asset.
Any decent accountant will guide you on the most financially efficient option for you or your business, which will vary from one sole trader/partnership/company to another - depending on factors such as vehicle age, annual mileage, vehicle owner, replacement frequency, financing, etc.
Right, I have totally messed up that question.
I understand for your tax return is calculated at 40p per mile, or you can bring in the asset of the van into your business via the balance sheet...bla.bla.bla.
It is a van I use.
The question I really should of asked was. When travelling to and from a gig how do you work out your fuel only?
For example I use this formula; Travel Cost = Miles to gig x the number of trips needed x 0.20 (yes I only charge 20p per mile - this is just for fuel remember) then if need be, add my time onto that figure usualy £7.50 for driving to and from jobs.
Right, I have totally messed up that question.
I understand for your tax return is calculated at 40p per mile, or you can bring in the asset of the van into your business via the balance sheet...bla.bla.bla.
It is a van I use.
The question I really should of asked was. When travelling to and from a gig how do you work out your fuel only?
For example I use this formula; Travel Cost = Miles to gig x the number of trips needed x 0.20 (yes I only charge 20p per mile - this is just for fuel remember) then if need be, add my time onto that figure usualy £7.50 for driving to and from jobs.
I don't understand the 20p and the £7.50, Paul
I'm guessing you are a sole trader, the vehicle belongs to you as a private individual and that you declare your earnings as a self employed individual. If that's the case, why are you complicating things?
I think Paul may be asking people what basis they make additional charges to the client?
Am I right Paul?
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