Can i turn off motor expenses allowable for tax?

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  • Updated 4 weeks ago
Hi, I am a sub contractor with a sole trader account. I use the mileage method for motoring expenses, and my understanding is you cannot use the mileage method and claim any motoring expenses. I currently have fuel payments, insurance, tax etc that are default to allow as a tax deduction.  Ive tried to turn off the allowable for tax deduction setting in motor expenses, but it wont allow me to do so. Is there a way I can do this? If not, what category should I use for transactions? Thanks
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Ben Crew

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Posted 1 month ago

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Kirsten Zammit, Employee

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Hi Ben,

If you're using the mileage method, you need to explain fuel and motor expenses as Money Paid to User > Drawings rather than as Payment > Motor Expenses, because otherwise you'll claim tax relief twice for the same journeys. 

You might find this article useful to explain the mileage method a bit more: https://www.freeagent.com/guides/expenses/mileage/.

I hope this helps, but please feel free to email us at support@freeagent.com if you have any further queries regarding this. 

Kind regards, 
Kirsten
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Ben Crew

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That's great, thanks for your reply. I will get that changed.