Claiming petrol when self employed

[PilatesPeach]

So if I fill up my car costing £80 and use it solely for business purposes, can I claim the £80 back as a deductible expense rather than 45p a mile which does not fully cover the £80? I am going to be doing my first tax return as SE.
I am a self employed sole trader. Thank you

No, that's not how business expenses work when you're self employed.

You take the total you earnt, knock off your expenses (like fuel or materials) and then you pay tax on what's left.

So you don't get the money for the fuel 'back' you just don't pay income tax on what you spent on fuel.

Is that not what I asked? I asked if the £80 was a deductible business expense? Income less deductible expenses equals profit and I pay tax on the profit?
I am confused by what you have said and how it is different to my understanding

ok maybe my OP was badly worded I think we mean the same thing

You can put the fuel through as a cost of the business, and the cost of the car as an asset (depreciating it over the course of the expected lifetime of the car).

Yes, it can be a deductible expense - sorry, when you said claim it back I thought you meant the whole 80 quid!

If you do the 45p per mile you can't put your insurance and road tax as deductible expenses, I don't think, but you can if you put the fuel as an expense.

OP, I think you're asking whether fuel can be included as an allowable expense rather than a tax-deductible expense. I think you can include the whole amount (allowable expense) if you have proof you only use the car for business purposes (god knows how you'd do that!). Hire an accountant, they'll save you thousands!

To claim fuel (and other car costs) as an allowable expense you have to solely use it for work, but aside for a van buy they look carefully for cars. If it's shared use you need to keep a full log of business miles then proportion costs - it's all on the hmrc website info

I do not earn enough to get an accountant but on googling the issue it would appear there are 2 methods

1. the 45p per mile - this has been the rate for 20 odd years and with fuel and wear and tear on car, it does not cover me

1. The actual cost method - deduct the petrol receipt amount then if say 80% of my use is business, I have to adjust the amount deducted to 80% of the cost of the fuel.

My petrol is at least 90% business use so can deduct 90% of all car related expense I incur it would seem inc servicing and any tyres and insurance etc.

wilkinsco.co.uk/do-i-need-to-keep-petrol-receipts-as-a-sole-trader

thanks all

If I did not work I could pretty much get rid of my car but I teach fitness classes I work 7 days a week and drive to different clubs and venues multiple times a day so petrol is around £80 a week plus obviously servicing and tyres and insurance.

My sole trader partner uses his van only for work and puts all petrol and van rated costs (servicing, mot, insurance) as a deductible expensive.

For completeness, you can’t change method, so if you’ve previously claimed 45ppm for your current car, you have to continue and can’t change to claiming actual costs, and vice Verda.

Works out better for me to claim the 45p, but my business use is a small percentage. Diesel is costing me around 20p a mile at the moment.

Same - my other half is self employed sold trader. Can just for business use and he puts all fuel receipts through as allowable expenses. Mot, insurance etc too.

Are you sure the 45 p doesn't cover all your petrol? What on earth are you driving?

Even with the price rises and driving a thirsty car on lots of short trips, you should be better off claiming the 45 p a mile than £80.

The 45p though is to cover petrol and other vehicle expenses ie towards servicing, tyres, insurance ie other costs of running the vehicle etc if you claim it as £80 you can also claim your servicing or a % of it attributable to business use and same for insurance etc so it is better to claim the cost of fuel plus tyres plus insurance plus servicing and repairs at the % that relates to business - so 90% easily for me is business which gives me better deductible expense than 45p a mile.

Never claimed 45p a mile as self employed only about 15 or 20 years ago when an employee.

I claim 45p per mile and as some nights I work I can travel 80m on round trip

So over the year can be almost 10000 miles so £&.5k off expenses

Mines a car and use for personal /family use ad well so easier to do ppm

Where as dh has a work van just for work so claims actual costs of tank of fuel, tyres mot etc