Hope that everyone reading this, and their families, are safe and well.
In these unusual and difficult times it’s even more vital than ever that you ensure that you are not paying more tax than is fair. Sometimes this means ensuring that you have received all the correct allowances that apply to your work.
Our work on tax accounting for sportspeople has shown us that there is a common situation in which sports industry workers are not always receiving all the mileage allowance which they should be receiving when they are driving their own cars for work.
One of our clients, for example, is an academy coach/scout for a lower-league football club. She often has to drive very long distances in her car to watch games, or to conduct sessions in schools or clubs.
Typically the mileage allowance permitted by HMRC is 45p per mile, but the club did not reimburse this full amount to our client – they’d agreed a lower rate.
Those in-the-know about tax accounting for sportspeople will know that this means our client was losing out unfairly. She was losing the balance of the mileage allowance from her taxed pay, when it should be coming from her untaxed pay – for many people, a difference of 20%. For many people this can work out to a loss of £250 - £500 a year or even more in some cases.
If you think you may be losing out on this or any other taxable allowance, get in touch with us. We’ll chat to you about your affairs with no obligation on you whatsoever.
Please visit www.accounting4actors.co.uk and find out about tax accounting for sportspeople, creative and cultural industry professionals