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Petrol allowance?

Discussion in 'Private tutors' started by Ravena, Jan 19, 2011.

  1. Ravena

    Ravena New commenter

    Hi all,
    I am trying to understand how the tax allowance is calculated as a self-employed tutor (sole trader).
    Does anyone know if we must keep receipts for petrol to be able to claim the 40p per mile tax allowance?
    One of my current tutees lives 5 miles away - so can I claim 40p x 10 miles for each lesson I am paid for? I only charge £20 per hour. So does this mean the 20% tax I would owe would be cancelled out by the petrol allowance?
    Sorry if I am being stupid - I am newly self-employed!
    Many thanks,

  2. Anonymous

    Anonymous New commenter

    Keep a mileage record of all miles done. You can get books for this.
    At the end of the year, you have a profit and loss. Basically you "lose 40p x 10 miles =£4" as an expense.
    So let's say you earn £5000 and have £500 as expenses in mileage. You would only pay tax on £4500.
    Mine is slightly more complicated as I often combine personal journeys with business journeys - i.e. drive to tutoring, do 3 lessons, pop to shops and come back. Having fun separating the two mileages!!!
  3. Hello Ravena

    I am newly self-employed too (reluctantly). I have similar queries. I use public transport and work for the local ACL sector and I don't know my rights and what I should and should not claim for. I feel we are hard done by because I spend a good portion of my earnings on creating and planning resources which I don't get paid for. Sorry I couldn't be helpful to you. I can't find anyone to advise or help me either.

    Kind regards

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