Could you confirm below :
Ie Tax due and Ni class 2 and 4 figures are correct
I am Self employed sole trader as uber driver
Yearly Income = 27000 no other income
Minus 12500 personal allowance
Minus 4500 mileage @ 45p assuming complete 10,000 miles per year
Minus 3000 petrol
Total 20000 from 27000
Profit = 7000 @ 20 % Tax = 1400
Tax due =1400
Ni 2 due = 3 x 52 weeks = 156
Ni 4 due = 27000 – 7500 for Mileage and petrol = 19500 @ 9% = 1755
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Replies (7)
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You've got the Class 2 right but the tax and Class 4 are wrong. Best to engage an accountant.
You can't claim petrol, in addition to the mileage allowance payments.
Do you have detailed records, to support your contention that you've covered, precisely, 10,000 business miles? Do you have detailed records, which support your income, at exactly, £27,000? What about other business expenses, which I'm sure you will have incurred (*)?
(*) I'm certainly not going to prompt what those might include.
Whilst I can appreciate a reluctance to engage an accountant, from your brief outline above, I'll make the following predictions; an accountant (in the long run) will actually save you money and, if you plough your own furrow, you'll likely end up with a tax enquiry, if only because the figures, which you've provided, give me the impression that you've pulled them out of thin air.
If you did decide to instruct an accountant - take recommendations, do some research and look for a long term relationship.
Were I your accountant I would advise you that you are calculating your profit wrong, your class 4 NIC wrong and that if you're going to do 10,000 miles a year business miles, you should get a car that does better than 14.5 MPG.
A self employed sole trade Uber driver would incur relatively low accountancy fees, which would be tax deductible, I would suggest you look for a well regarded local accountant and arrange a meeting.
Just to set you straight, it's not Just 1 or 2 things you've got wrong here, it's pretty much everything.
You need an accountant.