The use of the 'pence per mile' method for the self-employed is only allowed as an Inland Revenue concession (not in the legislation but for simplicity the Inland Revenue will allow such a claim). To qualify your business turnover must be below the VAT threshold, currently £60,000, andyou must be either starting in business or changing your vehicle.
You can only change from the traditional method of claiming car-running costs to the 'pence per mile' basis when you change your car. If you do not change your car you cannot change your method of claiming.
The first thing that you must do is keep a detailed mileage log. This should record ALL business and ALL private miles on a daily basis. You must also still retain you receipts for things like petrol, insurance car tax etc.This is your 'evidence. Once your have passed your accounting year-end then you apply the simple formula to your business mileage. That is the first 10,000 miles attract a rate of 40pence per mile with the excess mileage attracting a rate of 25pence per mile
For example a photographer who completes 16,000 business miles claim:
10,000 miles at 40p = £4,000
6,000 miles at 25p = £1,500
TOTAL CLAIM = £5,500
It is important to remember that the mileage allowance is a substitution for claiming ALL running costs of the vehicle including depreciation but excluding any finance charges.
The Societies of Photographers Convention and Trade Show at The Novotel London West, Hammersmith ...
You have 307 days until The Societies of Photographers Convention starting on Wednesday 16th March 2022