I've taken on a new client - chiropodist. He runs three clinics in different areas and wants to claim train travel to one of them and bus fares to the other two. I'm concerned that these will not be classed as allowable. Although the travel is necessary to carry out the work he does, would it not be classed as commuting as he has chosen where to have his clinics and therefore not allowable?
His previous bookkeeper claimed for all his travel and then his earnings fell below taxable levels and i believe the same would happen again. Can someone really survive on £6k per year?
Am I just being over cautious? This is the first client who has disagreed with what I have recommended.
Any help would be great!
-- Edited by maggie123 on Saturday 8th of November 2014 10:34:52 AM
Travel from home to your place of work is commuting, but travelling from one business to another, as far as I am aware, is business travel and is allowable.
I would not allow the travel to work on the basis that travelling to work cannot be claimed however to say a meeting with you i that is not a place of work but a business meeting therefore travel can be claimed, thats my understanding of it anyway
Thanks for the quick responses peps and you have put my mind at rest that I am fighting the correct corner.
He's already called me this morning so if he's insistent about the travel expenses I'll tell him to get someone else to do his books. I can do without the hassle.
Thanks for the quick responses peps and you have put my mind at rest that I am fighting the correct corner.
He's already called me this morning so if he's insistent about the travel expenses I'll tell him to get someone else to do his books. I can do without the hassle.
Thanks again.
Tell him you're looking into it to check you have your facts right first (you do) and that you'll get back to him in a couple of days. I think there's a workaround that covers you but also appeases the client, but I'm struggling to word it correctly. I'm hoping that one of the other regulars will describe better what I'm thinking about.
The conversation I've had with him went well - he accepts that it is commuting and that he can't claim it back. He has blamed the government and that it must have been a new ruling etc etc.
So pleased I stuck with my guns on this one! And thanks all for your help.
here's the evidence for what John was refering to in his first reply.
EIM32142 and EIM32360.
No expenses are allowable between home and any of the permanent workplaces but travel from one workplace to another is allowable expenditure.
I find that the reality is normally that one of the sites (generally the closest one to home) over time becomes the permanent place of work with other sites are treated like subsidiaries with ad joc (but regular) visits.
Your client may be losing money because of the way that they are running their business as, as you have identified, currently everything is home to work so non allowable expenditure.
kind regards,
Shaun.
__________________
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.
