Motor Expenses

System
System Posts: 100,534 🤖 Admin 🤖
Dear Forum,

My client is a freelance surface-pattern designer (sole trader)mainly selling her work world-wide via an agent. However she regularly works in-house for a company, invoicing the time occupied. Is the cost of fuel incurred travelling to this company allowable against her income? Moreover, is a mileage rate e.g. 40P p/m appropriate?,and if it is does one claim CA's re the car used?

Your assistance would be very much appreciated

Sincerely, Andrew Cruickshank

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Motor Expenses

    Hi Andrew

    40p per mile is fine, but that does include an element for depreciation, so no capital allowances can be claimed.

    If she has kept all her fuel/repairs receipts then it is worthwhile adding them up together with road tax and insurance then adding back the personal element and seeing which is better for her.

    Hope this helps.

    Claudia
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