Ebay - charging per mile for delivery, do you charge for journey in both directions?

[Fran]

Correct. It went a couple of years back, iirc. Now a flat rate. Which also applies to self employed claims for car costs.

[Bob Eager]

employer uses this as a base for payment)

[neverwas]

to be pernickety). Those restrictions for employees etc introduced in FA 2001 did not apply to the self-employed. Have they changed that position? If so, the relevant HMRC manual for them does not reflect the change. Eg

continues to show the use of mileage rates as optional.

Easy to get confused if you look only at the mileage rates - which are often the better deal (especially for older vehicles).

[Fran]

It's 40 pence a mile. I did my tax return a few days back based on exactly that.

[Fran]

Think you'll find they do now.

[neverwas]

Can you please give me any clue to the relevant provisions - eg any HMRC guidance? accountant's advice? legislation? (I am retired now so my interest is purely concern that I've lost the ability even to search the net - and that HMRC have lost the ability to amend the BIM.)

[Dave Liquorice]

As already been said that is for employees etc. Also note the date, yes it does say "any changes will be included as they occur." but the HMR&C site is pretty awful as far as maintenace is concerned. There is an lot of historical information that is still being presented as it was when new and current.

I had a fairly hefty dig about last month and could only find references to mileage rates and scale rates for meals etc being "reasonable", so if your work required lots of off road stuff in a 4x4 they would allow a higher mileage rate. Several places very carefully did not give any guidance as any rate, low or high.

I think the distinction between an "employee" and "self-employed/sole trader" makes a difference. Along with who (in the legal sense) owns the vechicle and pays for its mainentance, insurance etc.

[Spacker]

He's more likely to find that you're a liar.

[Spacker]

You mean you decided on 40p a mile.

[Fran]

Don't think so. I've worked alongside people like that - and done some myself! - and the Revenue were pretty tight on the set rate. You can certainly pay your employees, if we're talking employed, a higher mileage rate, but you'll be taxed on the difference.

[Dave Liquorice]

Incorrect. You pay tax on any gains. If you bought a watch for personal =

use for =A3300 and sold it later for =A3500 you would be liable for tax = on the =A3200 difference. The chances are though that most things bought new an= d later sold are not likely to be sold for more than you paid for them.

Any charge less actual costs is taxable.

[Fran]

Incorrect. You pay tax on any gains. If you bought a watch for personal use for £300 and sold it later for £500 you would be liable for tax on the £200 difference. The chances are though that most things bought new and later sold are not likely to be sold for more than you paid for them.

Any charge less actual costs is taxable.

====

Small point: yes, taxable as a gain, but if over your CGT limit.

[neverwas]

Better make that a watch bought for £30,000 and sold for £50,000 given the chattels limit. To quote from the SA helpsheet

"You do not need to calculate any gain on the disposal of any single chattel if the disposal proceeds did not exceed £6,000."

[The Natural Philosopher]

Not really true. We did some calcs on this, and the *opportunity* cost of a largish vehicle is about 30p a mile. that is taking all those mileage related costs beyond fuel into account - tyres brake linings, depreciation with mileage..

[The Older Gentleman]

Utter nonsense.