Self-employed - claim rate per mile for use of car

Source: HM Revenue & Customs | | 03/10/2017

There are simplified arrangements in place for the self-employed (and some partnerships) to claim a fixed rate deduction for certain expenses where there is a mix of business and private use. The simplified expenses regime is not available to limited companies or business partnerships involving a limited company.

The simplified expenses include a flat rate per mile claim for use of a car. The present rates - that can be used instead of working out the actual costs of buying and running your vehicle (insurance, repairs, servicing, fuel) - are:

  • Cars and goods vehicles first 10,000 miles  45p
  • Cars and goods vehicles after 10,000 miles  25p
  • Motorcycles     24p

Using the flat rates is not compulsory. However, once a decision is made to use the flat rates for a specific vehicle this must continue to be used for as long as that vehicle is used for business purposes.

Planning note

The simplified claims process cannot be used for any vehicle that you have previously claimed any actual running costs, or a capital allowance.

The self-employed can continue to claim for all other travel expenses, for example, train journeys and parking, in addition to a flat rate mileage claim.

If you would like to investigate the benefits or otherwise of using this scheme for any vehicle that you are considering using in your business (and that will have a mix of business and private use) will can help you crunch the numbers.



Toggle

Latest News

Tax is changing in Wales next year
12/12/2017 - More...
From next April, Wales will join Scotland in becoming responsible for some of the taxes paid locally. This will begin

What is reasonable care from a tax point of view?
12/12/2017 - More...
The tax penalty system is intended to make penalties simpler to understand and more consistent across many taxes. The

Selling your business – 10% tax may apply to sale
12/12/2017 - More...
Entrepreneurs' relief applies to the sale of a business, shares in a trading company or an individual’s interest in a

Newsletter

With our newsletter, you automatically receive our latest news by e-mail and get access to the archive including advanced search options!

» Sign up for the Newsletter
» Login

 

Search News


Our Address

Sterlings Ltd
Chartered Accountants
Lawford House,
Albert Place,
London N3 1QA

 

Company Registration No: 1357789
Registered in England and Wales
VAT No: 802 8138 49

Contact Us

tel: 020 8343 2255
e fax: 0871 474 2696
This email address is being protected from spambots. You need JavaScript enabled to view it.

Why Choose Us

Our Number

In the world of accountancy these are the only numbers you need -
020 8343 2255