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Post Info TOPIC: Sole Trader and claiming unusual travel costs


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Sole Trader and claiming unusual travel costs
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Hi

After spending 2 years at college and not being able to find permanent work locally, my wife has decided the register as a self-employed beauty therapist and obtain work through a temporary contracting agencies that was recommended to her. Since i'm the technical one in the family (drawback of being a software developer means if its computer related then it's automatically my task) i've got the luxury of finding a suitable software package and being the bookkeeper!

The agency work means that she can potentially be sent all over the local area to more or less anywhere that she is prepared to travel to. My wife doesnt drive so i have the job of taking her and picking her up, which actually means i am doing double the mileage that my wife would be doing if she could drive herself.

Question 1 - can we claim the double mileage or can we only claim for the journey there and back?

We only have one car in our household (mine) and it' a leased company car provided by my employer, but i pay for all private mileage. The car is a 61 plate 1.6 diesel.

Question 2 - if its my company car that we are doing the journey's in, does that complicate things and how or do we just claim the standard 45p per mile HRMC allowance?

 

I have many more questions, but this one is concerning me most at this point in time.

Thanks
Ian



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Hi Ian

Q1 can only claim the journey there are back.  The fact that you are taking your wife, going home, going back to collect her then going back is irrelevant.  In theory you could sit and wait until she is finished and just have the one journey

Q2 Not sure about this query.  The 45p allowance includes not only the diesel cost but also the cost of running the car which you may not have to bear if is a leased car.  Maybe someone else can give their thoughts?

Regards

MarkS



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Mark Stewart CA

http://stewartaccounting.co.uk/

Providing accounting, bookkeeping, payroll and tax services to small and medium sized businesses across Central Scotland and beyond.



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You may not be allowed to claim the the mileage as it's technically not your car, but you might just be able to claim the fuel costs for the journey alone

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Alfred

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Thanks for the replies

Alfred wrote:

You may not be allowed to claim the the mileage as it's technically not your car, but you might just be able to claim the fuel costs for the journey alone


 

Should I phone HMRC for advice on this or would they not know either?

Thanks
Ian



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It seems fairest to use an 'actual cost' basis by claiming in your wiife's accounts at the same rate that you pay
over for the private mileage.

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I'd agree, look at it this way, if you wife used public transport (or a taxi) she would claim the costs she was charged for the journey based on the receipts. Maybe you should bill her for the journey as a taxi would but then you would have to declare your income!!!!

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E&OE



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semsley wrote:

Maybe you should bill her for the journey as a taxi would but then you would have to declare your income!!!!


Do you mean that i would have to fill out a SA tax return?

Oddly enough, I did used to fill one out each year, but for about 3 years in a row HMRC had to keep paying me money back (one year i got almost 200 quid back) because my employer had taken too much tax.

After the third year, HMRC wrote to me saying that they didnt need me to provide a tax return any longer - funny that hmm



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CodeMonkey wrote:
Do you mean that i would have to fill out a SA tax return?

Oddly enough, I did used to fill one out each year, but for about 3 years in a row HMRC had to keep paying me money back (one year i got almost 200 quid back) because my employer had taken too much tax.

After the third year, HMRC wrote to me saying that they didnt need me to provide a tax return any longer - funny that hmm


Think you got the joke, lol.   HMRC would say that, wouldn't they.    If you think you might be still elligible for a refund then an R40 Repayment form might be less onerous.

Tim



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That's funny, when HMRC have to pay you money they think that it's ok for you not to fill in a tax return anymore but if you were having to pay them money they wouldn't dare tell you to stop filling the form then would they. lol

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Alfred

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