Stratford-upon-Avon
13 The Courtyard
Timothy's Bridge Road
Stratford-Upon-Avon
Warwickshire CV37 9NP
If you use your car or other vehicle to undertake business journeys on behalf of your employer, and your employer does not:
- Fully reimburse you for the business use, or
- Reimburses you but at a lower rate per mile than the approved HMRC rates (see below).
Then you may be able to make a claim to HMRC and reduce your overall tax bill.
HMRC’s notes on this topic are reproduced below:
Vehicles you use for work
You may be able to claim tax relief if you use cars, vans, motorcycles or bicycles for work.
This does not include travelling to and from your work unless it’s a temporary place of work.
How much you can claim depends on whether you’re using:
- a vehicle that you’ve bought or leased with your own money
- a vehicle owned or leased by your employer (a company vehicle)
You can claim for this tax year and the 4 previous tax years if you’re eligible.
Using your own vehicle for work
If you use your own vehicle or vehicles for work, you may be able to claim tax relief on the approved mileage rate. This covers the cost of owning and running your vehicle. You cannot claim separately for things like:
- fuel
- electricity
- vehicle tax
- MOTs
- repairs
To work out how much you can claim for each tax year you’ll need to:
- keep records of the dates and mileage of your work journeys;
- add up the mileage for each vehicle type you’ve used for work; and
- take away any amount your employer pays you towards your costs, (sometimes called a ‘mileage allowance’).
Approved mileage rates
|
First 10,000 business miles in the tax year |
Each business mile over 10,000 in the tax year |
|
|---|---|---|
|
Cars and vans |
45p |
25p |
|
Motorcycles |
24p |
24p |
|
Bicycles |
20p |
20p |
Using a company car for business
You can claim tax relief on the money you have spent on fuel and electricity, for business trips in your company car. Keep records to show the actual cost of the fuel.
If your employer reimburses some of the money, you can claim relief on the difference.
How to claim
If you complete a self-assessment tax return, you must claim through your tax return instead.
Grenfell James Technology Adoption Index
How does your business perform against others adopting financial tech? Find out with our interactive diagnostic:
1.
How does your business receive invoices?
A)
Invoices are mainly received in paper form
B)
Invoices are mainly received by email
C)
Invoices are emailed then automatically forwarded to a designated mailbox
2.
How are purchase invoices processed?
A)
Invoices are entered manually
B)
Invoices are attached to manually raised invoices
C)
Automated software (e.g. ReceiptBank, 1Tap, HubDoc etc) collates invoices
3.
How are accounts processed?
A)
Using Excel/paper-based
B)
Using Computer-based, offline software
C)
Using cloud-based accountancy software
4.
How often is business data revised?
A)
Data is updated annually
B)
Data is updated quarterly
C)
Data is updated monthly or more often
5.
How is banking updated for your business?
A)
Banking is updated manually
B)
Banking is updated by imports
C)
Banking is updated via a live feed
6.
How are bank payments made?
A)
Bank payments are manual
B)
Bank payments are made using bulk imports
C)
Bank payments are made directly via accounting software
7.
How are bank receipts reconciled?
A)
Receipts are chased and reconciled manually
B)
Receipts are chased and reconciled automatically
C)
A third-party platform is used to chase debts and collect fees
8.
How often are management reports produced?
A)
No reports are provided
B)
Reports are provided but often too late to be valuable
C)
Reports are automated with real-time information
Score 8-12:
Curious Exploration
Your financial technology phase is Curious Exploration
% of respondent businesses are in this phase too.
Switching accountancy systems may seem like an upheaval, but can be much more straightforward than most businesses imagine. From talking to our clients, they have found moving from paper invoicing and desktop-based accounting software to the cloud and apps quickly makes the transition process a worthwhile investment of time. Digital accounting solutions bring in streamlined processes, up-to-date business data and greater confidence in the accuracy of information when making financial decisions.
Grenfell James works with your team to fully assess the needs of your business and minimise the impact of any transitions for solutions we recommend.
Score 13-19:
Measured Discovery
Your financial technology phase is Measured Discovery
% of respondent businesses are in this phase too.
Once cloud accountancy software is in place, there’s still plenty of scope to improve your accountancy processes and make sure your business is maximising the benefits of adopting a digital accounting solution. Grenfell James assesses each business to understand how any implemented solutions are being used, identify areas for improvement and the needs of the business overall to support your business goals and achieve success.
Our team of experts can discuss a range of time-saving automation and get different apps and cloud-based solutions talking to create and manage a digital accountancy eco-system to help your business grow.
Score 20-24:
Bold Innovation
Your financial technology phase is Bold Innovation
% of respondent businesses are in this phase too.
You know the benefits of accounting technology and the impact it can have on your business goals. If you want to take it a step further, our team can conduct a systematic review of your processes, apps and business goals to ensure your digital accountancy ecosystem is keeping pace with the changing needs of a growing business.