ok, you can only claim (tax relief on) business miles for travel that are required to do your job. That means going from your office to a client for example. You cannot claim this allowance on commuting from your home to your place of work. However, if you freelance, you can (for tax purposes), establish your "place of work" as your home office. Then, when you get on your bike to cycle to your client (your client actually being the company hiring you at that time), you're making a business trip. Sounds much more complicated than it actually is. This isn't really a tax dodge, because in most cases a freelancer will work for more than one "client" during their working life. And remember, you're claiming 20p per mile to be exempt from your normal income tax as it is a business expense. So you save 28%/40% on 20p per mile. A higher rate tax payer who is also a freelancer / contractor, cycling say, 15 miles a day will save £6 per week in tax, or £288 a year.
check in with your accountant. who'll charge you £288 to set the thing up :-p
ok, you can only claim (tax relief on) business miles for travel that are required to do your job. That means going from your office to a client for example. You cannot claim this allowance on commuting from your home to your place of work. However, if you freelance, you can (for tax purposes), establish your "place of work" as your home office. Then, when you get on your bike to cycle to your client (your client actually being the company hiring you at that time), you're making a business trip. Sounds much more complicated than it actually is. This isn't really a tax dodge, because in most cases a freelancer will work for more than one "client" during their working life. And remember, you're claiming 20p per mile to be exempt from your normal income tax as it is a business expense. So you save 28%/40% on 20p per mile. A higher rate tax payer who is also a freelancer / contractor, cycling say, 15 miles a day will save £6 per week in tax, or £288 a year.
check in with your accountant. who'll charge you £288 to set the thing up :-p