I am self-employed with a small turnover and for the 2012/13 year will be submitting a tax return with actual vehicle expenses, including petrol receipts. One client I work for also pays me petrol expenses (at 20p per mile). Should I include all figures in turnover and expenses and put the client's payment also as a disallowable expense?
Also, for the 2013/14 year I will be claiming on a new vehicle for which I will adopt the simplified expenses system. How should client's petrol expenses be included in that tax return?
Replies (3)
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Include in sales
The simplest thing to do is to claim all your vehicle expenses and include the reimbursement from the client as income.
Petrol Expenses
Agree with the above, but remember to add back/adjust the expenses and Cap. All'ces for any proportion that relates to your private or non-business use.
New Vehicle
If you decide that claiming the 45p/25p a mile is the best option with the new vehicle, just include the money that you receive from your customer in sales.