>I haven't thought this through yet

No, you have not. HMRC don't just give you 45p for every mile you drive. It's a deductible for trips you have made in relation to your business, and which you can subtract from your turnover. If you have any.



Why do I feel like I've just fallen for post bait.

>>443981
Because it's the kind of maths that says getting into a higher tax bracket means you lose income because you get taxed more.

Sit down and have a think about it lad. Unless you're earning a load of money / profit in some other way you evil scheme will fail; HMRC are not just going to give you cash, they're going to forgive that much in tax. Also, 45p per mile is the amount you can usually claim in expenses if you work for a company and they make you travel around the country - maybe a bit more if it's your own car - maybe you need to get a job as a travelling salesman lad, you seem thick enough.

Get one of these for the back of your seat yeah?

>>443982
Er, you do get taxed more.

>>443984
Yes, because you have a higher income. That's how tax works.

>>443984
You only pay the higher tax on the higher income. So for example, you pay no tax on the first £12,500 you make, then you pay 20% up to £50,000, I think, then it's 40% up to £150,000, then it's 50% above that. So if you make £12,501 a year, you don't suddenly owe £2,500.20 in tax; you still pay nothing except for the £1 over. So you owe 20p in total, but you're still 80p richer than if you only made £12,500.

>>443984

Simple maths isn't your strong suit, is it. Or have you ever filed income tax at all.

You get taxed more, but your overall net income is also higher.

What does happen is that additional income gets taxed more, the more income you have. But you'll still be left with more net income than if you made less.

Over the years I've learned that often "I don't want to get paid more because I'll get taxed more" is just code for "if I get paid more I'll lose my bennies"

>>443984
>you do get taxed more

>>443988
>You get taxed more

Is this one of those .gs things where you start arguing with someone you're agreeing with?

I feel totally vindicated in choosing yesterday not to reply to this thread.

>>443983
>they're going to forgive that much in tax
Your understanding is barely above his. It's a reduction in taxable income, which means you'll only see at most 45% of that 45p.

>>443992
So you just need to find a job that lets you drive around a lot and pays you about £70k a year and you won't have to pay a penny in tax because you can claim it all as mileage expenses.

I know to take it with a pinch of salt when .gs starts talking big about finances because half of you apparently don't even understand fucking taxes.

Well, arguably very few people really understand taxes, by design, but still. I would have thought you lot did if you're all the financial braincases you claim to be.

>>443994
You should take just about everything posted on this site with a pinch of salt. Never take advice from this place.

>>443995
TO THE MOON etc

>>443993

It actually costs you around 40-45p per mile though to run a car in the UK, all costs included from maintenance to petrol and depreciation to insurance and road tax. So the government still isn't really giving you a handout and allowing you to claim vastly more exenses than you've actually had, just because your job somehow involves you driving around in your own car all day.

Being able to claim 45p per mile is a compromise so you don't have to prove how much it actually cost you to run your particular car as part of your business activities.

The only feasible way to claim more running costs than you've really had is if you buy an old clanger of a car that will no longer depreciate in a meaningful way and which you'll fix yourself. But especially when you're self employed, that isn't going to reflect well on you. You are going to have to project some sort of appearance of commercial success of your business, and you're not going to get that by driving around and to your customers in a rusty 2002 Vauxhall Corsa. Well, unless you run a vape shop in Croydon or you're a lass who paints nails for a living.

>>443997
>The only feasible way to claim more running costs than you've really had

Could always just lie about your mileage.

>>443998

You'll probably get away with that if you are a one-man business. Unless you start taking the piss anyway.

On the other hand, you always have to be prepared for an HMRC tax compliance check. Not sure they'd actually come out and look at your odometer, but you never know. You'll probably raise some eyebrows if you try to tell them that you drive 50K miles a year just to get supplies for your Croydon vape shop.

>>443997
Have you considered all types of vehicle and all forms of business activity and related inherent risks?

If you're self employed do you get to double dip on pension contributions? Let's say you earn £40k and put £4k into a pension. Tax relief will gross that up to £5k but can you also write this off as an expense so your taxable income falls to £35/36k?

>>444078

Nope - if you claim the tax relief, you can't also claim it as a business expense.

>>444079
If I'm taking a director's salary under the NI threshold, can I use rounding to tack an extra 3 or 4 pence onto my salary to push me over the threshold tax-free?

Also have you got any jobs going at yours?

>>444078

Pension contributions are a business expense. Plain and simple. They reduce your profit and thus your taxable income as a business.

>>444086

Yes, but if you claim it as a business expense you can't also claim tax relief, because you didn't pay tax on it in the first place. HMRC aren't completely daft.

>>444087

That is correct.

Problem is that a lot of people don't know that difference between a business expense and a tax relief.

A friend started a one-man computer repair service as a younglad, but his grasp of accounting and very basic tax law was quite tentative. He told me he was going to use his car for his business because he "could write everything off". But then when I asked him what he meant by that, he just said, "I don't know, I guess it means I get money back for what my car costs me". He was a trained painter and decorator, and they probably didn't teach him the finer points of running your own business, but he was really not prepared at all. We sort of lost contact a while later, but I think his business didn't last very long.

Are you a socialist by any chance.