Claiming extra cost of adding business insurance

Swipe

I'm starting a contract next week (through an umbrella co) and as I'll be visiting a client's office I'll need to add business use cover to my car insurance policy. If my insurance charge me an admin fee or extra for my premium can I add this as an expense and offset it against my tax?

jimmo

For tax purposes you are an employee of the umbrella company and therefore subject to the rules for employees.
As an employee you can claim 45 pence per mile for the first 10,000 miles and 25 ppm thereafter plus parking costs but precious little else.
http://www.hmrc.gov.uk/manuals/eimanual/EIM31335.htm
However, whilst it was a few years ago, when I added business use to my car insurance, it didn’t cost me a penny.

thenudeone

Even if you were self-employed and therefore allowed to use ACTUAL motoring costs instead of the hmrc-approved mileage rates, you still couldn't claim the 45p a mile AND the extra insurance cost. The mileage rate is meant to cover all of the costs involved and, IMO, is a reasonable rate.