Motoring Expenses for Self Employed

scotland22

I was wondering if anyone can clear this up for me.

I am currently self employed (have been since 2009) and have not been claiming mileage on my self assessment, mainly because it's not very clear and I don't want to take the risk.

The majority of my work comes from 1 client, who I visit 3-4 times per week (12 mile round trip). As I am self employed I would assume I could claim back up to 45p per mile? but even though I am self employed, would this be considered a workplace which is not claimable?

So basically to help clear this up for me (and probably many others) can I claim mileage if I am self employed even though it's mostly to the same place each day?

Nicola_Ed

Hi

You can claim for the cost of travelling from home to the client/customer.

The link to the section on the HMRC website is below.

http://www.hmrc.gov.uk/manuals/bimmanual/BIM47701.htm

Basically you can claim 45p per mile for the first 10,000 in a tax year.

scotland22

yes, but i believe that they don't allow it if it is to a regular place of business - so even though i am self employed, if i travel to the same client often then i believe they class that as commuting - which you can't claim on.

it's really confusing.

Nicola_Ed

Hi

The issue of commuting and regular places of work is only relevant if you are an employee not if you are self employed.

jimmo

HMRC may well think that your clients place is your normal place of business especially if all you do at home is the paperwork.

You need to establish that your home is a genuine place of business. What do you do?

http://www.hmrc.gov.uk/manuals/bimmanual/BIM37605.htm

chrismac1

It is confusing, agreed. The good news is that the HMRC view of things took a serious hit in 2011 in various cases, 2 relating to the Olympics.

One common thread in the businesses concerned - who all had one customer 5 days per week - was the need to prepare quotes and pricings, and similar commercial activity. The judges ruled in one case that it was unreasonable of HMRC to expect a business to carry out commercial pricing calculations on the premises of the customer who would be getting those prices, hence the "place of business" was the contractor's home - which in the case of one worker on the Olympic village and other London sites was Liverpool.

Hence all travel to and around London fully claimable, all accommodation in the London area also claimable.

Where I have clients with similar issues, I am discussing these cases with them to assess whether there are common features. In some clients nothing much other than admin. and accounting is taking place, billing is by the hour, my advice is "normal place of work" is the normal client location per the contract.

In other cases, fixed price quotes and so on are being prepared at the client's house. My advice here is that I believe we are on fairly solid ground in deeming "normal place of work" as the home, and advising the client to write me some detailed notes on all activities being carried out.

The most relevant case here is:

Kenyon v CRC 2011

If you claim, keep good records. The HMRC website does not reflect these cases and no doubt many HMRC staff have not been informed about them, so will conduct enquiries on the assumption that home is not the normal place of business.

John_Pierpoint

...and the "case" on here is:
https://forums.moneysavingexpert.com/discussion/3110596

scotland22

I think it's still too risky, so I don't think I'll claim the mileage as I think they would deem it to be a workplace commute rather than business travel, which is unfortunate

Pennywise

scotland22 wrote: »

I think it's still too risky, so I don't think I'll claim the mileage as I think they would deem it to be a workplace commute rather than business travel, which is unfortunate

Depends on what else you do and where.

I'd agree that if this is your main or only customer and that you do most of the work at their premises, and have done so for years, then HMRC may well try to argue it's your normal workplace.

However, if they're just one of many customers, and you work at lots of other customer premises, then you're probably ok to claim, even if you do spend a lot of time at their premises.

The court cases highlight that it's the individual circumstances that matter and that there is no rule that applies to all scenarios.

Courgette

sorry to jump in. I work for an employer and I also work self-employed. I do private tuition in the student's home. I have a number of students on my books at any given time, usually for a few weeks at a time.

Can I claim the 45p per mile for travel to them?

Also, one student who I worked with quite a bit last year lives absolutely in the back of beyond. Without my car it would have been extremely difficult to reach him and economically wouldn't have been worth it. In light of this, can I claim a percentage of the running costs of my car?

Thanks for any help