Carer and extra payment for travel

WatlingA5

Working as home-visit carer, hourly rate plus 50p per 30-minute visit towards cost of fuel, etc (own car), effectively raising hourly rate by £1. Is the 50p taxable? Or can it be listed as a business expense to help reduce tax bill?

Not an employee, but may become one if all goes well. Still on JSA and, obviously, on next visit to Jobcentre, will be declaring work and income. Will get their view then, but want to be prepared

Thanks in advance.

Hammyman

Are you an employee or not because it surely sounds like you are.

AS AN EMPLOYEE:

OK, basically you are entitled to claim 40p per mile for the first 10,000 miles then 25p per mile after that LESS ANY PAYMENT YOUR EMPLOYER REIMBURSES. You're going to need to do a bit of paperwork to make sure you get what you should.

Keep a record of your mileage including travelling from home to the first client and from the last client back home if you don't work from an office. At the end of the tax year, complete a P87 "Expenses in employment. Work out the total mileage you've done in your employment, the amount and then take off what you've been re-imbursed.

AS SELF EMPLOYED:
Same as above except instead of noting the 50p allowance seperately, you include it in your income. You deduct the total business mileage at HMRC rates as an expense.

REMEMBER:
In both instances, you need to change your car insurance to add Class A Business Use as you aren't classed as commuting and use it in work. It should cost nothing other than an admin fee with most insurers.

fengirl_2

You state you are not an employee but may be soon - this is unlawful - you are either an employee from the start, or you are not. You cannot change status at the whim of the employer.
If you are paid the rate dictated by the employer, the work is arranged by the employer, you are not risking your own capital and you are not allowed to send someone else to do the work, then you are almost certainly an employee. BY not treating you as such, the employer is avoiding his obligation to pay NI, sick pay, holiday pay, etc and you are probably not insured.
It is not acceptable for employers to treat a trial period as self employment and you need to advise your employer of this - or report him anonymously to HMRC.

WatlingA5

Failed to choose my terminology well, didn't I?

I was actually asking on behalf of someone else - as I understand it, she is regarded as a temp, at the same rate of pay as the permanent staff and has received one pay cheque, with a proper pay slip. She's not sure whether she wants to do it as a permanent job (as a pen-pusher she'd never had any contact with that type of work but when you're unemployed, you'll give many things a go). It's a well-regarded and reputable local company and everything seems to be done by the book.

If, when her next Jobcentre meeting comes up, she has decided against that work, she'll declare what she's earned as temp work and tell them she won't be doing any more. And if she decides to carry on, she can tell them she's found a job - it's been promised "if she still wants it". At least the temp work should bring her a bit more than the regular JSA.

Hammyman: Thanks for the info on mileage claims - I'll pass that on.

Thanks both for your responses.