More on the latest tax rates and allowances and limited company expenses. In the 21/22 tax year, there is a tax-free Capital Gains allowance of £12,300.
Capital Gains tax on properties would be either 18 or 28. So your other car related costs cannot be claimed in addition to the mileage rate. Capital Gains tax on shares without Entrepreneur’s Relief is 10 if you’re in the basic rate tax band, and 20 in the higher rate. This rate is an approved mileage rate set by HMRC, the rate covers all car related costs such as fuel, insurance, servicing etc. The amount you can claim for mileage is 45 pence per mile for the first 10,000 miles in a tax year and 25 pence per mile thereafter. That said, if you spend less than 40 per cent of your typical working week in any one place, you can keep claiming travel costs for regardless of how long you stay there. If you've been working on a contract for 20 months and it is then extended for another six, you stop being eligible to claim mileage expenses from the minute you find out you'll be spending more than 24 months in one place. Significantly, you can only claim as long as you expect to work at that location for no more than two years. As a temporary worker, you can normally claim all travel expenses to and from your temporary place of work. To use the same example, clothing which is required in your business for health and safety purposes would be allowable.įor many contractors, by far the most regular expense claimed is mileage. However, if you can separate the two you can still claim for the costs exclusive to the business. For example, if you purchase clothing which is general business attire it would not be allowable as this clothing may have other non-work related use. On top of this, you might be able to claim for larger 'capital items' - for example, if you're required to own computer equipment - which will reduce your profits for the year.Īnything you spend which can have a dual purpose is classed as non-allowable expenditure. Among the common expenses claimed are accountancy fees, advertising, insurance, postage, safety gear and travel expenses, though this is by no means everything. This means that anything you spend on items for personal or non-business use doesn't count. Allowable expenses - those for which you can claim - are the ones you have to pay out to earn business profits.
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