Self employed net income

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Post by samantha559 » Tue Feb 16, 2021 7:53 pm
I'm in an IVA and am on Universal Credit. Recently I started working some hours with Amazon Flex Prime Now; I work on a self employed basis and I use my own car to deliver groceries.

I do not get mileage reimbursed; I just get an hourly rate. I have informed my IP about the work and they have asked for a net figure, after mileage and expenses of running own car

My question is, can I deduct the standard HMRC rate of 45p per mile from my gross income to cover all associated costs of using my car or will they require me to work out exactly what I spend on mileage and car repairs?

Universal credit take off 45p a mile for the purposes of calculating my allowance, so I would have thought my IP would do the same.

The trouble is, because I do alot of mileage, if I deduct 45p per mile it significantly reduces my declared income but my bank balance looks much healthier, because obviously the amount is more than I'm paying out in fuel.

The last thing I want is to end up being told I owe more money at my annual review.

I hope this makes sense!


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Post by Foggy » Tue Feb 16, 2021 8:35 pm
It is pretty much standard practice to use the HMRC guide figures in these things, so I would expect your IP to be happy with this too -- but, I am afraid, the only person who can say "Yay or Nay" is your own IP. Do try to get his response in writing in case there is any misunderstanding later on.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014


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Post by lifenoteasy » Wed Feb 17, 2021 9:41 am
Don't forget that the 0.45p is only for the first 10000 miles and then goes down to 0.25p after that.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
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