Self Employed Mileage Advice

swanny65

Hi
My friends wife started self employment October 2013 and registered with HMRC. She has asked me to complete her end of year return. She works as a horse rider taking out horses for the owner of the horses. She and also hunts and attends shows for the owner. She is paid by the owner for this work. Personally I think she could be classified as an employee but HMRC have agreed she and other riders working for the owner are self employed.
Accepting she is self employed am I correct in assuming the mileage she incurs traveling to the yard, hunts and events can all be claimed at £0.45. (I am also self employed and claim this flat rate for customer visits) She and I dont want to get involved in working out depreciation, keeping fuel receipts etc etc
Thanks

payless

If going to same place - Even if self employed, hmrc might consider this the usual place of work, and therefore not an allowable expense

swanny65

Thanks for the quick reply. That is what i thought.

So trips to the yard NOT allowable. Trips to hunts, events etc allowable as they are not the usual place of work.

sheramber

dos she pay for the fuel to attend these events or dos the owner provide transport?

swanny65

She pays for all fuel used be it to the yard, event or hunting

chrismac1

This is drivel. She is clearly self-employed, you say HMRC have accepted this. So under the "24 month rule" - Google "HMRC 24 month rule" she can definitely claim the 45 pence per mile for the first 2 years.

"She hunts and attends shows for the owner" so even after the 24 months expires there is at least a fair chance NO single location other than her home - "base of operations" - will be classed as a "permanent workplace". Indeed if this mileage is significant I advise her to take all possible steps to ensure this, so she can carry on with the 45 pence claims!

TheCyclingProgrammer

Does the 24 month rule apply to sole traders? I thought it only applied to employees. Certainly all of the information about it is detailed in the EIM, not the BIM.

payless

chrismac1 wrote: »

This is drivel. She is clearly self-employed, you say HMRC have accepted this. So under the "24 month rule" - Google "HMRC 24 month rule" she can definitely claim the 45 pence per mile for the first 2 years.

"She hunts and attends shows for the owner" so even after the 24 months expires there is at least a fair chance NO single location other than her home - "base of operations" - will be classed as a "permanent workplace". Indeed if this mileage is significant I advise her to take all possible steps to ensure this, so she can carry on with the 45 pence claims!

Drivel - thats a bit strong. I did say "might"

I think the term HMRC are applying ( to disallow travel) now is known as “regular and predictable attendance” and thats can apply to more than one location.
from the OP comments I think the HMRC if asked MIGHT apply this term.

AS I believe you are an accountant- I bow to your knowledge regarding a 24 month rule - although as questioned abiove does this really apply to self employed people or would it be more applicable to contractors ?