[L.J.Thorpe]

as above - thats exactly what the tax inspector has done, its in her handwriting, she filled out the form (as explained my acc passed away)

thats not right you say "tax inspector"...does she work at tax office cos if so it dont always follow that they know what they are talking about :

[alanwilson]

hmmm, well she is the tax inspector so if it does get inspected then it'll be her doing the inspecting.

think i'll get in touch with the tax office this week just to clarify it with her, I have her office number anyway so at least they know I'm not hiding anything, but honestly she did the calcs etc and filled out the form for me anyway.

Maybe I'll do it myself from now on.

But I still don't see why people are bothered about fuel prices.

[frames to panes]

  :

[need a cleaner]

But I still don't see why people are bothered about fuel prices.

well maybe because of the running costs of a van/car have risen by 19% on the last 3/4 months

[macmac]

But I still don't see why people are bothered about fuel prices.    

If you spend 1k on fuel per year you won't pay tax (22%) on 1k of you earnings.
So that's 220 quid in tax you won't have to pay BUT you have paid out 1000 pounds. Your fuel has now effectively cost you 780 quid!!

Again, to save 440 quid in tax you would have to spend 2k on fuel so it's still a cost of 1560 quid in fuel.

If i only spent 100 quid on fuel instead of 1k i would only save 22 quid in tax BUT 900 on fuel.
Guess which one i'd prefere?
Tony

[Paul Coleman]

But I still don't see why people are bothered about fuel prices.    

If you spend 1k on fuel per year you won't pay tax (22%) on 1k of you earnings.
So that's 220 quid in tax you won't have to pay BUT you have paid out 1000 pounds. Your fuel has now effectively cost you 780 quid!!

Again, to save 440 quid in tax you would have to spend 2k on fuel so it's still a cost of 1560 quid in fuel.

If i only spent 100 quid on fuel instead of 1k i would only save 22 quid in tax BUT 900 on fuel.
Guess which one i'd prefere?
Tony

Don't forget that for most people there is an 8% NI contribution to take into account between profit levels of about 6 grand and 35 grand so effectively there is tax relief of 30% - just that some of it has another name.

[s.hughes]

I havent read all the post but I dont put prices up every year and on jobs that should really go up this year I am not going to do. Simple reason is that price increases are hitting everyone and I make the point of letting the custy know that it will be next year they go up just so that things settle down. I know a lot wont agree with this but thats the way I'm doing it.
When I do put pricing up I dont do 50pence but over £2.00

[Helen]

It may be easier just to think of your fuel bill as another overhead.
So included with ALL the other costs that you have to pay to run your business, it comes off your gross income and then the tax is calculated

For those who are wary of increasing their prices or don't wish to.... the longer days are coming up, 1 more decently priced property per day will more than cover your fuel bill. As long as you have scheduled correctly that is

[Count Phil]

Alan wilson, you will be soooooo in trouble if you ever get investigated.

Who ever told you that's how to do your tax is having a laugh!

They'll be rolling around laughing at the IR too!

Man, If I took all my expenses off the tax rather than turnover, I wouldn't pay tax!!!

[MSTAV]

on milage i thought its 40 pence per mile for the 1st 10.000 miles then 25 pence per mile after that. thyats what my accountant told me and what i do.

[alanwilson]

ok ok I got it checked out today - she was wrong - making me wrong, they're still not going to bother changing it (i've notified them and thats all I can do  )

as for me not caring about fuel prices its simple.  assuming fuel costs have risen by 20% this last year and you cover 10,000miles a year for business costing you 20p per mile for fuel = £2000 a year for diesel.

Tax relief @ 22% = £440 = 1560

less 20% = £1600 (a year ago)

tax relief @ 22% = 352 = £1248

grand difference of £312 in the year or £6 a week!

Hardly life changing is it?

or go get my tax inspector to sort it out for you