Site-based Employee - Mileage Claims
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Coeus
Posts: 292 Forumite
in Cutting tax
Hi all,
Hope all is well.
I've got a friend who works in the construction industry.
He is an employee and works at multiple construction sites throughout the year.
Am I correct in thinking that as he does not have a permanent place of work - all his mileage to and from the site would be allowable for tax purposes and he could claim tax relief?
I've had a look at the below link and it seems to be the case!
https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim32132
He has kept no records of his mileage unfortunately :-(
In these instances would HMRC have much issue with a flat estimate for a year (say 10,000 business miles)?
Many thanks for any input!
Hope all is well.
I've got a friend who works in the construction industry.
He is an employee and works at multiple construction sites throughout the year.
Am I correct in thinking that as he does not have a permanent place of work - all his mileage to and from the site would be allowable for tax purposes and he could claim tax relief?
I've had a look at the below link and it seems to be the case!
https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim32132
He has kept no records of his mileage unfortunately :-(
In these instances would HMRC have much issue with a flat estimate for a year (say 10,000 business miles)?
Many thanks for any input!
Hope For The Best, Plan For The Worst
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Comments
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Chitty chitty bump bump :-)Hope For The Best, Plan For The Worst0
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Who does he work for? If its an actual construction company and not an umbrella company or other type of intermediary/agency, then there may be an element of allowable travel expenses.Hi all,
Hope all is well.
I've got a friend who works in the construction industry.
He is an employee and works at multiple construction sites throughout the year.
Am I correct in thinking that as he does not have a permanent place of work - all his mileage to and from the site would be allowable for tax purposes and he could claim tax relief?
I've had a look at the below link and it seems to be the case!
https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim32132
He has kept no records of his mileage unfortunately :-(
In these instances would HMRC have much issue with a flat estimate for a year (say 10,000 business miles)?
Many thanks for any input!
If he works via an intermediary/umbrella company only, and the claim is for the current tax year, then the chances of being able to claim mileage/travel expenses is virtually nil due to the change in the legislation which came into force in April 2016. See, https://www.gov.uk/government/publications/employment-intermediaries-travel-expense-guidance/travel-and-subsistence-expenses-for-workers-engaged-through-employment-intermediaries-from-6-april-2016
Although he has no mileage records claiming expenses is not completely out of the question, however its not as simple as to say that he can estimate it at 10,000 miles per year.
If he knows which sites he worked at then he has the basis for providing a calculated estimate. This can be done using any number of route planners on the net to estimate the journey.
If he simply tries to claim relief on 10,000 miles with no employer reimbursement , no log of journeys, and/or no details as to how this was calculated, then HMRC will simply refuse the claim.
The best thing to do IME, is to find out where he was working during the period of his claim. Try and make a log of the sites he worked at and put them in some sort of date order. Work out the mileage using a route planner and if necessary print out the details as a reference. Work out the number of days he worked there dont forget to exclude weekends/none working days.
If he cant remember where he's worked then surely his employer will know?
Once you have this information then he can work out his mileage and provide an explanation to HMRC as to how he has done this, and explaining that as he didnt know he could claim he kept no records.
He then deducts any employer contribution/reimbursement that may be given. If there is no employer contribution then it may also be beneficial to get a letter from his employer advising that no mileage payment is made (assuming that is the case).
This gives your friend the basis of a claim.
He then sends this to HMRC to consider.
Dont forget, if the claim for any one year is for £2500.00 or more, then for that year he must make the claim via Self Assessment.[SIZE=-1]To equate judgement and wisdom with occupation is at best . . . insulting.
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You do not have to provide any evidence with a claim (or you didnt the last time I did it). However just picking 10K out of the air would arouse suspicion so it is best to be accurate. I assume they have a % of claims they investigate.
He can also claim for other work related stuff like tools if not provided and washing of uniform or ppe. Worth looking into that too.
Your rebate is the tax portion of the mileage allowance. eg 10000 miles at 45ppm is £4500, you get back 20% which is £900 (not sure if the rate is the current one)£0/£2017 extra income
£1070 credit card0 -
Who does he work for? If its an actual construction company and not an umbrella company or other type of intermediary/agency, then there may be an element of allowable travel expenses.
If he works via an intermediary/umbrella company only, and the claim is for the current tax year, then the chances of being able to claim mileage/travel expenses is virtually nil due to the change in the legislation which came into force in April 2016. See, https://www.gov.uk/government/publications/employment-intermediaries-travel-expense-guidance/travel-and-subsistence-expenses-for-workers-engaged-through-employment-intermediaries-from-6-april-2016
Although he has no mileage records claiming expenses is not completely out of the question, however its not as simple as to say that he can estimate it at 10,000 miles per year.
If he knows which sites he worked at then he has the basis for providing a calculated estimate. This can be done using any number of route planners on the net to estimate the journey.
If he simply tries to claim relief on 10,000 miles with no employer reimbursement , no log of journeys, and/or no details as to how this was calculated, then HMRC will simply refuse the claim.
The best thing to do IME, is to find out where he was working during the period of his claim. Try and make a log of the sites he worked at and put them in some sort of date order. Work out the mileage using a route planner and if necessary print out the details as a reference. Work out the number of days he worked there dont forget to exclude weekends/none working days.
If he cant remember where he's worked then surely his employer will know?
Once you have this information then he can work out his mileage and provide an explanation to HMRC as to how he has done this, and explaining that as he didnt know he could claim he kept no records.
He then deducts any employer contribution/reimbursement that may be given. If there is no employer contribution then it may also be beneficial to get a letter from his employer advising that no mileage payment is made (assuming that is the case).
This gives your friend the basis of a claim.
He then sends this to HMRC to consider.
Dont forget, if the claim for any one year is for £2500.00 or more, then for that year he must make the claim via Self Assessment.
Hi dori2o.
Many thanks for the amazingly detailed reponse - was beyond expectations!
He does word directly for a construction company as an employee.
I am going to query if he can generate any mileage records to get a reasonably accurate record.
Good suggestion about asking his employer - will chase this avenue with him.
I have done some research but there is alot of confusion - some arguing that as he has no permanent place of work he cannot have a temporary place of work hence no claim could be raised - what are your thoughts on this please?
Many thanks,
Coeus.Hope For The Best, Plan For The Worst0 -
Have you looked at booklet 490, this is an indepth publication covering employee expenses, in particular it covers travel to temporary workplaces
https://www.gov.uk/government/publications/490-employee-travel-a-tax-and-nics-guide0 -
Many people EMPLOYED in the construction industry sucessfully claim expenses on the very basis that the places they work are, by definition, temporary workplaces based on the fact they have no permanent place of work.Hi dori2o.
Many thanks for the amazingly detailed reponse - was beyond expectations!
He does word directly for a construction company as an employee.
I am going to query if he can generate any mileage records to get a reasonably accurate record.
Good suggestion about asking his employer - will chase this avenue with him.
I have done some research but there is alot of confusion - some arguing that as he has no permanent place of work he cannot have a temporary place of work hence no claim could be raised - what are your thoughts on this please?
Many thanks,
Coeus.
You need to look at the information in booklet 490.
The circumstances of each claim are different.
Nobody is expected to provide the additional information I have suggested you submit, but in all likelyhood if you submit your claim without it, there is a high possibility that HMRC will simply write back and ask for the claim to be justified by providing that exact information.[SIZE=-1]To equate judgement and wisdom with occupation is at best . . . insulting.
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