Freelancing car wear and tear question

[macdaddydoodah]

I do lots of freelance work for one company. Most of it is at home but occasionally its away from home. For previous events, I've driven myself and usually 1 other person to the event and been paid for petrol only.

I'm now wondering if I should actually be getting paid for petrol, wear and tear instead ie. 45p per mile.

Want to raise this with company but not sure if I'm BU?

If you are self employed you can claim 45p per mile as a tax deductible expense on your annual tax return. Or a percentage of your total motoring costs, whichever is the greater - your accountant will work this out for you.

Thanks Laurel, I don't have an accountant as would prob spend more on them than I earn! So I can claim it back but should I be charging company? These are occasional events, not every day travel by any means.

Most companies will pay the 45p. You also get extra if you have a passenger

"5p per passenger per business mile for carrying fellow employees in a car or van on journeys which are also work journeys for them. Only payments specifically for carrying passengers count and there is no relief if you receive less than 5p or nothing at all"

from:-

www.gov.uk/government/publications/rates-and-allowances-travel-mileage-and-fuel-allowances/rates-and-allowances-travel-mileage-and-fuel-allowances

If you do freelance work I presume you are self employed. You can claim the 45p per mile as an expense on your tax return instead of the petrol/car costs. Don't forget to include all your mileage including going to your client's premises, going to pick up office supplies etc.

I am self employed, so I can claim it back. But AIBU in that I think client should pay. As it stands they get 2 people delivered to the event for cost of petrol - minimal compared to train ticket prices which they would be happy to pay for.

Bear in mind, though, that if the company you are working for is reimbursing you for petrol, then you shouldn't be including this as an expense on your tax return as you will not be 'out of pocket' for that amount.

Yes, either or, that's fine. I don't add any petrol on tax return anyway as normally do so little.

So is it fine to charge a company 45p / mile if you are freelancing for them? Understand if I was an employee that it would be fine but not sure how it works if you are a freelancer. I know I could claim the money back but the company would pay up front for train fare so I think they should also pay up front for petrol, wear and tear.

Just up your rate for the job to cover your travel cost

They aren't obliged to pay you 45p per mile, that's just the amount they can pay an employee tax free. They can offer you any amount they like and you can either accept or not accept it.