CIS and business mileage Help

Curly

hi i am currently working under the CIS scheme, Basically im doing painting and decorating and im working all over the place, my employer used to give me a van but now im useing my car with no pertrol money. i had a search and found out that you can claim 40P a mile, but when i talked to the other painters they insist that this is not the case.

could any one give me a good answer were i could or couldnot also i live in glasgow if any one knows a gd accountin that would be gd to thanks

Ryan

Premier_2

I sounds like you don't have regular place of work, but take work whever you can find it.

You cannot usually claim costs of commuting (travelling to and from work)

Check the HMRC website for complete advice on this

Savvy_Sue

You can reclaim the tax on 45p per mile if your company doesn't reimburse you for mileage, IF it's an allowable expense (ie not commuting). Again, the HMRC website is the place to look. Warning: I don't know anything about the CIS scheme, so it's possible you can't claim.

Here's a start. Lots of links. Mileage rates.

villabadger

Curly wrote: »

hi i am currently working under the CIS scheme, Basically im doing painting and decorating and im working all over the place, my employer used to give me a van but now im useing my car with no pertrol money. i had a search and found out that you can claim 40P a mile, but when i talked to the other painters they insist that this is not the case.

could any one give me a good answer were i could or couldnot also i live in glasgow if any one knows a gd accountin that would be gd to thanks

Ryan

The simple answer is no, you cannot claim for mileage. As you are registered for CIS then you are self employed. So, you should be charging for your travel costs, insurance etc as part of your daily rate or fixed price (however, you are being paid). Alternatively, see if you can get them to give you some cash in exchange for some fuel receipts.

Out of interest, have you recently changed from being employed to self employed yet still do all of your work for the same company? If so, you need to be careful that you don't get caught under the IR35 rules.

DCodd

villabadger wrote: »

The simple answer is no, you cannot claim for mileage. As you are registered for CIS then you are self employed. So, you should be charging for your travel costs, insurance etc as part of your daily rate or fixed price (however, you are being paid). Alternatively, see if you can get them to give you some cash in exchange for some fuel receipts.

Out of interest, have you recently changed from being employed to self employed yet still do all of your work for the same company? If so, you need to be careful that you don't get caught under the IR35 rules.

Just to add to the above post, your costs for your travel can not be included in your materials split for CIS, it must be included in the Labour element and have a CIS deduction made from it.

Curly

well what happened was when i started the job they gave me a van then someone else started and he got the van. so now im tolled drive your own car and take tools, paint, etc or you wont have a job. also he said he would give me cash in exchange for fuel receipts but hes changed his mind in the mean time its costing me a fortune as a could be doing up to 100 mile a day.

so what your basically saying is im Screwed. if a was pye i would get the 45p and if a was fully self employed i would get 45p but because im cis and business Miles i do are not covered

Curly

villabadger wrote: »

Out of interest, have you recently changed from being employed to self employed yet still do all of your work for the same company? If so, you need to be careful that you don't get caught under the IR35 rules.

nope i have never been employed by them tho i have been self employed by them before, all the people that work for them (6 painter) have always been self employed (4 years) constant work she they really should be employed but the guy is just pulling a fast one.

villabadger

Curly wrote: »

well what happened was when i started the job they gave me a van then someone else started and he got the van. so now im tolled drive your own car and take tools, paint, etc or you wont have a job. also he said he would give me cash in exchange for fuel receipts but hes changed his mind in the mean time its costing me a fortune as a could be doing up to 100 mile a day.

so what your basically saying is im Screwed. if a was pye i would get the 45p and if a was fully self employed i would get 45p but because im cis and business Miles i do are not covered

Just to be clear......as you are being paid via the CIS scheme then you are already fully self employed. If you were employed but using your own vehicle for company business then you would be entitled to claim a mileage rate from your employer of up to 45p per business mile. Being self employed means that your business expenses must be covered by your income so you need to ensure that your day rate or fixed price is high enough to cover this and your living costs. Forget about the 45p thing as it doesn't apply to you.

The fact that you had use of a vehicle before that has been removed and you have not been compensated is unfortunate. However, the company has no obligation to loan a vehicle to you as you are self employed and you have a responsibility to get yourself to work/site every day. I agree that this guy is screwing you as obviously the fair thing to do is to either increase your 'wages' or re-imburse you for the fuel costs.

It is not clear from the above but do you supply materials? Do you work on a day rate or fixed price? The subbies that we 'hire' are paid a day rate and given some cash for fuel receipts if the job is a fair way from home.

I am concerned about your first post where you ask for details of a good accountant. Do you not already use one? If not, who does your books every year to ensure that you maximise your tax rebate, assuming you are doing this?

Curly

villabadger wrote: »

Just to be clear......as you are being paid via the CIS scheme then you are already fully self employed. If you were employed but using your own vehicle for company business then you would be entitled to claim a mileage rate from your employer of up to 45p per business mile. Being self employed means that your business expenses must be covered by your income so you need to ensure that your day rate or fixed price is high enough to cover this and your living costs. Forget about the 45p thing as it doesn't apply to you.

The fact that you had use of a vehicle before that has been removed and you have not been compensated is unfortunate. However, the company has no obligation to loan a vehicle to you as you are self employed and you have a responsibility to get yourself to work/site every day. I agree that this guy is screwing you as obviously the fair thing to do is to either increase your 'wages' or re-imburse you for the fuel costs.

It is not clear from the above but do you supply materials? Do you work on a day rate or fixed price? The subbies that we 'hire' are paid a day rate and given some cash for fuel receipts if the job is a fair way from home.

I am concerned about your first post where you ask for details of a good accountant. Do you not already use one? If not, who does your books every year to ensure that you maximise your tax rebate, assuming you are doing this?

im on a day rate and i dont suply materials ,
as for an accountant well i have been on and off cis the last 3 year, the first year (2009/2010) a was 4 weeks cis so i just did it my self, the second year (2010/2011) i was 6 months so i want to get an accountant for that one

one more thing a did a search and i found this guy

https://forums.moneysavingexpert.com/discussion/3338232

he is a self employed plasterer but hes geting payed cis also, am i corect is saying that he has been giving the wrong advise when he was toled he could claim per mile

villabadger

Curly wrote: »

im on a day rate and i dont suply materials ,
as for an accountant well i have been on and off cis the last 3 year, the first year (2009/2010) a was 4 weeks cis so i just did it my self, the second year (2010/2011) i was 6 months so i want to get an accountant for that one

one more thing a did a search and i found this guy

https://forums.moneysavingexpert.com/discussion/3338232

he is a self employed plasterer but hes geting payed cis also, am i corect is saying that he has been giving the wrong advise when he was toled he could claim per mile

Ok, it is a little more complicated than I have lead you to believe to this point. So, as you've asked the question..... the HMRC website says this...
You can deduct the cost of using your car for business purposes. There are two ways of working out how much you can deduct:

• a fixed rate for each mile travelled on business, using our fixed mileage rates
• the actual expenses, worked out using detailed records of business and private mileage to apportion your recorded expenditure

In both cases above, as you are self employed, either option gives a monetary value to the cost of your business for your allowable travel costs. Either way, the value is deducted from your income which effectively reduces your tax bill.

So, thinking about it a bit more.... you should be able to calculate an overall cost using a mileage rate for all of your recorded business miles. This means that you do not actually receive any extra money but save money in the reduced amount of tax you will have to pay. I have only ever used this method as an employee using my own vehicle so I probably haven't given you the full picture for being self employed. An accountant will give you the best way forward for you in particular as we all have slightly different circumstances.

Regarding your CIS status, I hope the company is providing you with a monthly statement of the 20% deductions made from your pay.

Pennywise

Forget IR35 - it doesn't and can't apply to a self employed sole trader - only to partnerships and limited companies.