Passenger mileage payments for the self employed
Many people are aware that for 10 years now, companies have been allowed to pay employees who carry at least one colleague in their car for a business journey an additional 5p per mile on top of the normal 45p.
However if you are self-employed, you have not been able to claim anything extra when carrying a passenger.
But a page has just been updated on the HMRC site which states that the self employed can now claim this as a business expense – backdated to 6 April 2011!
As many self employed people and their advisers are preparing tax returns for 2011/12 right now, this is definately something to bear in mind.