In Tax

Sole Traders – Consider 45p per mile

Posted by: on Oct 26, 2011 | No Comments

Are you are a sole trader and have turnover below the VAT threshold (currently £77,000) ?

If the answer to that question is yes then next time you purchase a car for business use you should consider the tax benefits of claiming 45p a mile instead of claiming the usual fuel, insurance, servicing, road tax, etc expenses and capital allowances.

When you cannot claim Vat on the fuel you use, in many cases recording your business miles and claiming 45p a mile is more tax efficient than claiming all of your expenses.

If in doubt contact your accountant for a more detailed assessment.

Sir Tax accountants in Camberley are proactive in looking for ways to reduce you tax liability. Contact Mike@SirTax.co.uk 01276 451465

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