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Seperating mileage allowance help + I don't know what I'm doing!

Last post 24 May 2007, 6:47 AM by Landrace pig. 1 replies.
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  •  23 May 2007, 7:18 AM 272541

    Seperating mileage allowance help + I don't know what I'm doing!

    Hi,

    I need some advice on business mileage.

    I have been forced to go self employed/sole trader for a company as they have a current head freeze count - this is the only company I am working for.
    Although I am working for the UK side of the company, it is the US who hold my contract.
    In my contract, there is NO mention of where I am based (office wise).

    I am a field engineer, but am based at an office 60 miles away, and it is getting quite expensive to kep on travelling too and from work each day.

    My first question is, can I claim tax back on my mileage too and from the office?

    Secondly, as it is an actual field role, I also do a lot of mileage during work hours for which I get 40p/m from my employer, how would this tie in with me wanting to claim tax back for my travel too and from work?

    As I said, I was forced into going self employed and have been working for this company for two months. I haven't yet told the IR I am self employed or even know what additional insurances I should be taking out - so if anyone has some helpful advice on what the hell I need to be doing it would be appreciated.

    Cheers guys.

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  •  24 May 2007, 6:47 AM 273364 in reply to 272541

    Re: Separating mileage allowance help + I don't know what I'm doing!

    First thing is that if the company you are dealing with is your only customer, and they are are effectively controlling your work, th IR is likely to say that you are de facto an emplyee and will be after Class 1 NI contributions. Much better for you to set up your own limited company that employs you, and your company then trades with this outfit that is providing the work - although you could get clobbered by IR35 if you aren't careful.

    In any case, you should declare your home to be your place of work. (Again you are on firmer ground if it is the registered office of your own limited company.) That way, you claim a business expense for travelling from your place of work (your home) to your customer's office. If you continue to refer to the company that supplies you with work as your employer, and treat their office as your place of work, the IR will probably decide that there is an employer-employee relationship.

    There was a case donkey's years ago that set some precedent: http://www.hmrc.gov.uk/manuals/esmmanual/esm7030.htm.
    This is a very shaky area though, and you really should get advice from an accountant on the details of your specific contractual arrangement. 


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