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Hello,
I started as a sole trader in May 2016. The car that I use is for both business and leisure and I have paid all petrol from my own account and not claimed it back from the business. I have kept a mileage log detailing all miles for business. Should I use the HMRC calculator and claim back 45p per mile from the business account? I thought that I read somewhere that if you did this then you could not deduct that expense from your gross income when calculating what your net profit is - therefore incurring more income tax? This whole thing confuses me, as you may have noticed, any help or assistance would be greatly appreciated. It is the same for working from home - I have never taken any money from the business account for household expenses like phone, electric etc?
Thanks
Emma
I started as a sole trader in May 2016. The car that I use is for both business and leisure and I have paid all petrol from my own account and not claimed it back from the business. I have kept a mileage log detailing all miles for business. Should I use the HMRC calculator and claim back 45p per mile from the business account? I thought that I read somewhere that if you did this then you could not deduct that expense from your gross income when calculating what your net profit is - therefore incurring more income tax? This whole thing confuses me, as you may have noticed, any help or assistance would be greatly appreciated. It is the same for working from home - I have never taken any money from the business account for household expenses like phone, electric etc?
Thanks
Emma