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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4972
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I am working out my self assessment tax return. if I

Resolved Question:

Hello. I am working out my self assessment tax return. if I have charged my clients travel expenses for me to get to their premises do I include these as earned income?
The amount I have charged does not cover the amount I have spent on the work's Van. Can I add eg van maintenance and servicing, MOT, RAC, Insurance as extras if I include the travel expenses paid by clients in my return?
thank you
Submitted: 1 year ago.
Category: Tax
Expert: replied 1 year ago.
Thank you for your question..I would deduct these travel expenses from your total motor running expenses (van maintenance and servicing, fuel, MOT, insurance etc) instead of showing the figure as earned income.Technically, these are reimbursement of expenses you have incurred in the course of your business. I hope this is helpful and answers your question.If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.
Customer: replied 1 year ago.
(Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call. Let me know if you need more information, or send me the service offer(s) so we can proceed.
Expert: replied 1 year ago.
hello, ready for phone call
Customer: replied 1 year ago.
I. Thanks for the reply. can we try online for a minute - will this be part of the original cost?
Customer: replied 1 year ago.
As I was going to use the 'simple accounts' rate of 45p/mile on my tax return I have not kept my petrol receipts for the year. On the Tax return Form do I just enter the earnings minus the travel expenses and then put maintenance and insurance as an entry under costs? Do I need to show the amount I claimed from my clients for travel? If so, do I say this was for petrol?
Expert: replied 1 year ago.
Charging mileage to clients is not earned income .. it is disbursement of expenses and you should reduce your business motor expenses by the amount recharged to clients.Your motor expenses would include van repairs, fuel costs and insurance etcI hope this is helpful and answers your question
Customer: replied 1 year ago.
Hi. Thank you. What about me not having the petrol receipts? Do I show this as money I have received from my clients? or do I not put in a claim for it at all?
Do I show the actual amount received from clients and also the amount after deductions?
Customer: replied 1 year ago.
Is it a problem that I do not have receipts for petrol?
Expert: replied 1 year ago.
If you are basing your own motoring expenses on mileage rates, then this rate reflects all your motoring expenses including maintenance and insurance.If you use mileage rates then you don't need to retain petrol receipts..Say your motor expense based on mileage claim is £2,500 and you have recharged clients £750 for mileage.In your costs section you would show (2,500-750) = £1,750. I hope this is helpful.
Customer: replied 1 year ago.
Thank you. My figures are: TOTAL £1867 which is made up of
Fuel £370
Tax £240
Insurance & RAC £432
Mot £50
Maintenance £775I have charged clients for mileage: £860Do I just show the final figure £1007 or do I show the workings?
if I use this system of working out costs is it OK that I do not have the petrol receipts?
Expert: replied 1 year ago.
Thank you for your reply.You show net figure of £1,007 as your motor expenses....there is no need to show workings. I hope this is helpful.If there are no more issues, I will appreciate if you would kindly rate my service/accept the service I have provided before you leave the site, to ensure I get credited for it by Just Answer.
Customer: replied 1 year ago.
Thank you. One last clarification - I enter earned income as the amount AFTER deducting the travel expenses that I charged the client - I just have to have these figures in my Accounts in case I need to show them in the future?
Expert: replied 1 year ago.
Thank you for your reply.Your income is income from work done and excludes mileage recharged.I hope this is helpful. and other Tax Specialists are ready to help you
Customer: replied 1 year ago.
Thank you. This has been a really good service and I have rated it 5 star. With best wishes, Jenny B
Expert: replied 1 year ago.
I thank you for accepting my answer.
Best wishes.

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