If you use your own vehicle for work, you may be able to claim tax relief on the approved mileage rate, which covers the cost of owning and running your vehicle
Approved Mileage Rates:
- Cars and Vans: £0.45 for the first 10,000 business miles in the tax year and £0.25 after each business mile over 10,000
- Motorcycles: £0.24 for both the first 10,000 business miles in the tax year and each business mile over 10,000
- Bicycles: £0.20 for both the first 10,000 business miles in the tax year and each business mile over 10,000
You cannot claim separately for things like fuel, electricity, road tax, MOTs and repairs.
You can also claim tax relief on the money you’ve spent on fuel and electricity for business trips in your company car.
You can claim allowable expenses for:
- Vehicle insurance
- Hire charges
- Breakdown cover
The Construction Industry is certainly a difficult one to master – turning your hobby into a career comes with plenty of ups and downs. Knowing the key mistakes to avoid and the top tips to follow is essential for any business.
This article is copyright © 2022