Thank you for your question.
You can claim 45p per mile for use of your car for contractor work. This payment should not be subject to 20% tax on payment as it is not payment for labour.
You would reduce your motoring expenses by the amount of mileage claim reimbursed by the contractor.
I hope this is helpful and answers your question.
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I hope my answer is helpful.
Thank you for your reply..
Any monies paid by contractor towards motoring costs is not turnover and would be credited against your motoring expenses within your accounts e.g
say your total motoring costs are £1,500 and the contractor has paid your £500 for your mileage claims.
You would report in your accounts/SA103S (1500-500) £1,000 as motoring expenses in box 12 car, van and travel expenses.
I hope this is helpful.
Hi there, just checking if you need further clarification.