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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5113
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I am starting a self employed position paid on a commision

Customer Question

I am starting a self employed position paid on a commision basis paid on sales achieved but with expenses for my car paid at a rate of 45p per mile covered. I
Can you tell if this the most tax efficient way to be paid because in a previous job(PAYE) my company gave me a taxed car allowance to buy my own car and then claim 15p a mile with the remainder claimed back through the tax system ?
Submitted: 2 years ago.
Category: Tax
Expert: replied 2 years ago.
Thank you for your question.Being self employed, this would appear to be a good tax efficient way of covering motoring expenses.The choices you have for claiming motor expenses against your income are:- motor expenses based on actual spend (covering, fuel, repairs and maintenance, road tax and insurance and any finanace costs if there is a loan to cover vehicle)- motor expenses based on approved mileage rates by HMRC.If you claim motor expenses and then there is reimbursement from your customer/principal then this reimbursement would be offset against what you claim against your income.Allowances paid by employers are deemed income/earnings and taxed under PAYE. I hope this is helpful and answers your question.
Expert: replied 2 years ago.
Hi there
Just checking in. How did things turn out?
Many thanks