A new client is a dentist whom works Mon-Wed at an NHS practice and Thu/Fri at a private practice - both long term contracts are on a self employed basis rather than PAYE.
His previous accountant (of several years) has always put through the mileage for journeys from home to both practices as buisness mileage.
In my opinion there is no 'itinerant' nature to his trade; he has definite places of work on defined days of the week, 52 weeks per year, for several years.
I have told my client that this mileage is not business mileage, it is commuting and as such is not an allowable expense. I now have an unhappy client!
If anyone out there thinks i've got this wrong could you please tell me so that i can make my client happy again!!
Thanks
______________________ Ian Long MICB CB. Dip BA (Hons) Bridgford Bookkeeping
where clients are site based workers as appears to be the case here then there is a limit of 24 months where travel can be claimed.
As soon as a client knows that they will be working at a site for more than 24 months then all travel expenses stop from that moment (even if that is on day one).
The flaw with that of course is that client x has a contract to work at a client site for 23 months so claims mileage. client y expects that the contract will run for 5 years so cannot claim any travel.
What if at the end of 23 months client x is extended beyond 2 years and client y's contract is cut short after 23 months!
Client x got 23 months of travel where client y got nothing.
bad flaw in the system methinks but back to the querstion at hand, you are right and the client is wrong.
kind regards,
Shaun.
p.s. there are other rules around the 24 month rule based on time spent at any one site that make it stricter but for the purposes of this reply the answer given is sufficient.
p.s.2 52 weeks a year!!! Thats one dedicated dentist!
__________________
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.
Totally agree with Shamus. You have obviously heard about the case that was decided at the Upper Tribunal just before Christmas concerning a medical practitioner.
That case was decided on their being a dual motive:-
the first motive of the journey was to perform his services (business motive);
the second motive of the journey was to ensure, unconsciously, that the work was carried out away from his house (non-business motive).
The taxpayer lost the case on the basis that the journey had a dual motive one of which was not business related.
HMRC are going to use the result from this case to clear up a backlog of similar cases in the very near future.
I've since spoken with my client and presented a pile of "evidence" with which I've demonstrated to him that this is not business mileage. He's still not happy, but he is in agreement that this mileage should not be claimed as a business expense.
