Self employed construction

Rhenser

biscuit1 wrote: »

So travelling to and from a job is not tax deductable, umm so when is it tax deductable

When you live, and work, and pay taxes, in Germany.

And it's not necessarily via the shortest route, but the most reasonable route, so that could be the quickest even if it's much longer.

biscuit1_2

DCODD he works for a large company that does groundwork ie football pitches and the like, including irrigation and turfing.

Claree__x

biscuit1 wrote: »

He is self employed as far as the employer is concerned, no holidays or sick pay and has to submit a self assesment, he is in the building enviroment so yes CIS, he doesnt set rates or dictate when or how the job gets done. So travelling to and from a job is not tax deductable, umm so when is it tax deductable, he isnt travelling to the office he is given a destination to go and has to use his own transport to get there so this must surley be a cost.

Does the company have a main office or are they all field based?

"You cannot claim back any expenses associated with normal commuting to and from your registered place of work, as defined by your contract of employment."

I would suggest that if he's going somewhere other than where mentioned in his contract then he can claim mileage at 45p/mile for the first 10,000 miles, 25p there after.

DCodd

AbbieCadabra wrote: »

if an employer is taking the risk of breaking the rules & treating someone as self-employed, when they probably know that they should be an employee (with far more rights/benefits etc.), why shouldn't HMRC get to know about it? as you've already said, it will the employer that's in the wrong...

the employee is looking for advice & calls HMRC, during the call the full facts come to light - nothing wrong with that as far as i see it.

Because it is a waste of Taxpayers money. HMRC would have everyone an employee. They waste God knows how much on fruitless employment status inspections.

DCodd

biscuit1 wrote: »

DCODD he works for a large company that does groundwork ie football pitches and the like, including irrigation and turfing.

Doing what tasks? I ask because a labourer would normally be regarded as an employee.

You can be an employee for a short a time as 1 day. However, as I said the major part of the responsibilty lays with the Company as they are the ones that confirm to HMRC that they have checked the status of each and every subcontractor every time that they submit their CIS return.

Is he on a day rate or fixed price?

biscuit1_2

He is paid an hourly rate and they are officebased with him being instructed which site to go to currently 40 miles away

lazer

OP - ignore some of the advice on here.

It appears as if he is registered as a subcontractor via CIS (Construction Industry Scheme) - they contractor is obligated to take 20% of his earnings at source for tax, however on completion of a self assessment form and the end of the year a refund will generally be due unless your son earns enough to be a higher rate tax payer.

Travelling to a client site when self employed is an allowable expense and there are 2 ways of doing this,
1 - claim 45p a mile for the first 10,000 miles and 25p for mile thereafter.
2 - Is the vehicle your son has for for use in the business - in which case he can introduce the asset into the business (claiming the market value of it at the date the business commenced), and claim any running costs of the vehicle - tax, insurance, fuel etc. A proportion of these costs should be deducted for personal use.

HMRC have a few webinars about becoming self employed, so it could be useful to watch these, as there are many other things that can be claimed as an expense.

Examples are:
Tools - generally hand tools would be an expense and power tools an asset (For which you would claim capital allowances instead)
Accountants fees
Public Liability Insurance
Use of a Home office
Work clothes
Professional fees, subscriptions etc

Have a ready of this
http://www.hmrc.gov.uk/incometax/relief-self-emp.htm

DCodd

biscuit1 wrote: »

He is paid an hourly rate and they are officebased with him being instructed which site to go to currently 40 miles away

What tasks does he do?

He is looking more like an employee but without the full details of his relationship to the contractor it is difficult to say. The questions on the online status checker are too generic to be of much use, especially in situations like your son's. The Devil is in the detail of the contract. Does he have a contract?

biscuit1_2

Cheers lazer that seems to fit the bill with what we have, everything does seem above board nothing underhand it is CIS based and it does appear he is classed as a sub-contractor, and i really was hopeing he would be able to get some of his travelling expenses back again as it's costing him a fortune, what does he have to do to introduce the car into the buisness.

Claree__x

biscuit1 wrote: »

Cheers lazer that seems to fit the bill with what we have, everything does seem above board nothing underhand it is CIS based and it does appear he is classed as a sub-contractor, and i really was hopeing he would be able to get some of his travelling expenses back again as it's costing him a fortune, what does he have to do to introduce the car into the buisness.

He'd struggle to convince an accountant to claim for the car as a business asset unless he only uses it for business.