Quote:
Originally Posted by Flyboy
What? You told Homer that he he could net over four thousand pounds by claiming forty pence per mile.
But that is not possible, as a schedule "D" tax payer, one does not "claim back" anything. One uses that amount to reduce, i.e. set against, one's taxable profits (in other word increasing ones expenditure), therefore not having to pay tax on the equivalent amount of profit. If that equivalent amount of profit is four thousand pounds, it would mean you would pay eight hundred pounds less tax.
|
Net as in a string bag used to catch things
Sorry flyboy, but if you aren't able to fathom that HMRC allow you to claim it back as expenses then I really wonder how you're going to understand that while VAT was increased from the two rates of 8% and 12.5% to a single rate of 15% income tax was reduced considerably.