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Post Info TOPIC: Claiming mileage costs as an employee


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Claiming mileage costs as an employee
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I have been approached by a client who is employment by a well known construction firm who would like to claim back his mileage costs as he works away from home.

He has worked on the current contract for 3 years on a rolling 3 month contract.

I am aware of a 24 month rule on claiming mileage - but what I wanted to check was whether, if you were on a contact for more than 24 moths, if you could claim for the first 24 month period of mileage?

Any thoughts would be appreciated.

Ben



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Hi Ben,

it's one of the unfair things in the tax system.

As soon as you believe that your contract will go over more than 24 months mileage (and subsistence, hotels etc.) must stop.

So, imagine this scenario.

Two contractors. the first is told that they will be required for 25 months so they cannot claim mileage. However, the contract is cut short after 23 months and 29 days. The contractor was entitled to claim nothing.

The second contractor takes a 24 month contract. And claims mileage. At the end of his contract it is decided that rather than using a permanent person to do the post development training the contract is extended by another month (25 month total as per the other contractor). In this instance the contractor was able to claim their mileage for the first 24 months but not the 25th month.

So, patching that to your scenario. If the expectation is that the contract will last for three years then the contractor cannot claim any mileage at all for any period of the contract.

Awful design of a rule isn't it.

HTH,

Shaun.



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Shaun

Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.



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Thanks for the message Shamus,

Looks like another piece of unfair legislation in the UK tax system.

Ben



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