Milage??

[Hebs]

is anyone aware of this??

Mileage payments
The following rates are used to calculate the maximum amount that can be exempted from tax and National Insurance contributions for business miles travelled in the employee’s own vehicle.

Motor cars and vans
first 10,000 business miles - 40p per mile
over 10,000 business miles - 25p per mile


:panic: :panic:

[FizzysFriends]

Yep, its been like that for years. I do it monthly at work, they can claim 833 at 40p per month and the rest 25p.

[Chanelle]

Is it right that you can only claim 10% on car related bills, insurance etc ... OR petrol allowance? .... If so which is more worth while ??

[tulip0803]

Yes it is either a percentage of use (dependeant on how much is childminding and how much personal) OR 40p per mile which is all inclusive.

If you do 40p a mile you need to log each journey (from & to), reason for journey, Mileage and cost. You do not need to keep fuel receipts etc if you do this method BUT you do need to make a log of journeys made.

If you go for go for the actual cost method you need to keep all receipts for motoring costs ( fuel, MOT, repairs, insurance, tax etc) and total miles for business and total miles for personal use. Then calculate expences this way:-

Business Miles Travelled in The Year =A
Total miles travelled in the year =B
%costs relating to business use 100xA/B =C%
Motoring costs = D
Proportion of costs you can claim = DxC%



You have to make a note of annual mileage using this method.


Most childminders use the 40p a mile method as it is simpler and normally more beneficial. In you 1st year you can run both side by side and select the best one for you at the end of the year BUT whatever method you use you have to keep using until you change car.

[Chatterbox Childcare]

Yes these have been the rates for a while but I don't expect anyone goes over the 10,000 miles. I don't do mileage as I have a high percentage of business use.

I did notice that you had written employees car, remember we are self employed.

[sonia ann]

just a thought....... i've used the 40p/mile for as long as i can remember, isn't it about time this rate was increased.....how long has it been 40p for now?:(

[Chatterbox Childcare]

just a thought....... i've used the 40p/mile for as long as i can remember, isn't it about time this rate was increased.....how long has it been 40p for now?:(

Not going to happen. The idea of this rate was to get people to go green and if they increase it, it will defeat the initial purpose

[FizzysFriends]

just a thought....... i've used the 40p/mile for as long as i can remember, isn't it about time this rate was increased.....how long has it been 40p for now?:(

I was hopeful they would change it when they starting changing other amounts along the same lines, but alas they didn't :angry:

[Gizmo]

I have also read somewhere is you are going with a passenger (another cm to a training course) you can claim 45p per mile

[Chatterbox Childcare]

I have also read somewhere is you are going with a passenger (another cm to a training course) you can claim 45p per mile

this isn't just to training it can be anywhere you take another childminder and it is 5p per person in the car per mile

[Blackhorse]

i also think that if you want to claim for all the car costs rather than the 40p per mile you need to have fully audited accounts!!

[Chatterbox Childcare]

i also think that if you want to claim for all the car costs rather than the 40p per mile you need to have fully audited accounts!!

Never heard of this one..

[Blackhorse]

they were discussion it at an scma meeting..
will see if I can find something written about it somewhere...

[Blackhorse]

it the SCMA booklet it says you need to keep full business accounts
if you claim a percentage of the car cost as capital allowance rather than milage

it says: '' you should remember that if you claim capital allowances, you cannot take advantage of the SCMA/HRMC agreement so you will need to keep full business accounts including receipts for items less than £10.''

and

''most cars do not qualify for annual investment allowance''

and it goes on...so better doublecheck if anyone is planning to claim for the car rather than the milage!

[Chatterbox Childcare]

it the SCMA booklet it says you need to keep full business accounts
if you claim a percentage of the car cost as capital allowance rather than milage

it says: '' you should remember that if you claim capital allowances, you cannot take advantage of the SCMA/HRMC agreement so you will need to keep full business accounts including receipts for items less than £10.''

and

''most cars do not qualify for annual investment allowance''

and it goes on...so better doublecheck if anyone is planning to claim for the car rather than the milage!

Thanks for that - I will ring again tomorrow.

I have claimed the Capital Allowance for 10 years and not come across an audit. I do full accounts but don't keep receipts under £10

Thank you

[Blackhorse]

Thanks for that - I will ring again tomorrow.

I have claimed the Capital Allowance for 10 years and not come across an audit. I do full accounts but don't keep receipts under £10

Thank you

let me know how it goes...!