Just a quick question as I'm doing my tax again, from reading through posts I've seen some people say you can claim back 40p a mile and some say 45p a mile. Which is correct as I previously claimed 40p.
Can I jump on and ask a relevant question please? When mobile, should you keep petrol receipts or just a record of your appointments (mileage)? I haven't been keeping my receipts because we also use the car for family use so in actual fact the petrol receipts don't mean anything other than we've filled up! Someone said the other day I should keep them but have no idea why?
If you are claiming the 45p per business mile then you do not keep petrol receipts. You claim any business mileage done so that includes to & from your clients, going for products, training and marketing etc..
The 45p covers all car costs not just petrol, so it also covers insurance, tax, mot, repairs, wear & tear, tyres, etc....
If you keep the receipts and claim the total cost as a business expense, then HMRC will assume that you have a "company car" and you will have to pay tax on it as a benefit in kind. The tax is based on the engine size, co2 emmissions, age and value etc. (Probably somewhere around £1500 a year)
If you use your own car for business use, then as the other posts have said, you are entitles to claim 40 something pence per mile for the 1st 10,000 miles. After this it reduces to around 20p, check HMRC website for this years correct figures.