Head over to our Knowledge Hub and you’ll find our latest article helping contractors choose a tax-efficient salary for 2013/14. It even has a handy infographic – being tax efficient has never been easier! Full details here.
As all contractors are aware, claiming expenses is a great way of reducing your annual tax bill, and when it comes to familiar items like business mileage, office supplies and client lunches the rules are pretty black and white: there’s no limit to the amount of genuine business expenses you can claim every month providing you’re familiar with HMRC’s guidelines.
We all know that claiming for your business mileage is a simple and effective way to reduce your tax bill. HMRC’s mileage rate is fixed at 40p per mile (for the first 10,000 miles) so, to maximize your savings, it’s definitely in your interests to find the most efficient car with the lowest possible running costs. However, it’s a big job to work out the true efficiency of your prospective vehicle, especially if you want to consider all bases – including depreciation, road tax, insurance, servicing, fuel efficiency and all other running costs.
Fortunately, not only are Dean and I true petrol heads, we’re also pretty handy with excel, so we’ve selected ten cars, loaded their vital statistics into our spreadsheet and created the ultimate efficiency barometer, calculating the true running costs per mile for each of our chosen cars.
Here’s the result: inniAccounts’ top ten cars for contractor and freelancers: