Quote:
Originally Posted by Flyboy
I think you'll find that is up to four thousand pounds that he can set against his taxable profits (only for the first ten thousand miles, it is twenty-five pence per mile after that), assuming he is paying basic rate tax, that will net him only eight hundred pounds (or up to one thousand six hundred pounds, if he pays tax at the higher rate).
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£1500 = approx 275gal = 13750 miles@50mpg = £4K (@40ppm) + £937.50 (@25ppm) = £4937.50
turnover - expenses = profit (ie you're taxed on what you earn after expenses have been paid, you don't take expenses out of the tax you've paid)
This is assuming £1500 extra cost in 6 months for business mileage.
Even when I worked for NTL as a basic tax rate payer on PAYE I claimed over £1500 one year.