HiI have just started as self emplyed and do around 120 a week for work. Ive been told that I can claim 40p per mile for running costs ?How would I take this, monthly ? and in what form ?Thanks Answer1:You can use this as a tax deduction. That is, you can offset it against income when calculating your tax liability. Answer2:Usually if you are registered as self employed you do not claim so much per mile but claim petrol used for business, road tax, insurance, servicing charges and depreciation on your car on an annual basis. Any car parking charges and toll fees can also be claimed. However if the car is alos used for private use then only calim the % used for business. Therefore if 50% of your usage based on mileage is business add up all the costs and claim 50% but indicate on your return that you are doing this so they see you are being honest! Answer3:The way to claim this money off your business is as follows:1. Keep a log of your business mileage (not personal miles - and if you have an office or shop, your home to work miles are not allowed).2. Once a week or once a month, tot up the miles, and write yourself a cheque from your business bank account, or do a bank transfer. The rate is 40p a mile for the first 10,000 business miles in a year, 25p a mile thereafter. This is a tax deductable amount.This method is only allowed if your turnover is below the VAT registration threshold (currently £67000 a year).The other method is to put all the motor expenses through the business (but still keep a log of your business miles). Then at the end of the tax year, the private use percentage is added back to your profit to work out how much tax you have to pay.