Mileage claim as contractor?

adamh88

My partner starts a new job on Monday on a 9 month temporary contract.

Can she claim expenses such as mileage?

My understanding is that because she is travelling to a temporary place of work, she can claim. However, she's PAYE through an agency (unsure if it's an umbrella company or not).

Any help would be greatly appreciated!

StuC75

Sounds like could be misinterpreting 'temporary place of work' there. Is it a general 'temporary contract' - as in Agency work , or is it of a more 'professional' \ freelance nature that's been taken on as a contract?

For most cases temporary place of work would mean that usually worked from Location A, but would need to travel to Location B on occasions - so could reclaim costs [etc] for that additional journey..

rjlarke

adamh88 wrote: »

My partner starts a new job on Monday on a 9 month temporary contract.

Can she claim expenses such as mileage?

My understanding is that because she is travelling to a temporary place of work, she can claim. However, she's PAYE through an agency (unsure if it's an umbrella company or not).

Any help would be greatly appreciated!

When we had freelance reps. We would cover their expenses from home to their field appointment but we couldn't cover their expenses to our office, i'd imagine your situation classes as regular place of work even if it's not permanent. I'd imagine being PAYE means that it would have to be the case that the agency would be able to claim your travel as an expense and could choose to do that and then pay it to you. But you're unable to do it yourself, I'd imagine that the fact that they don't have this in place is an indication that my first point is true.

TheCyclingProgrammer

It's not certain it would be considered a temporary place of work, especially if she has no other base.

It's also the case that if you use an umbrella and only intend to do a single contract then the client location is considered a permanent place of work.

The rules around this aren't straightforward but my gut feeling is that no, exempt mileage claims will not be allowable.

There is nothing stopping the agency paying you travel expenses of course but these would be subject to tax and NIC.

chrismac1

Much of this thread is drivel so far. None has mentioned the "24 month rule" yet which is cruical here, if this arrangement has been properly set up by whoever your partner is working through. In my view it is 90% likely travel from home to the plce of work is allowable.

http://www.hmrc.gov.uk/manuals/eimanual/eim32080.htm

TheCyclingProgrammer

chrismac1 wrote: »

Much of this thread is drivel so far. None has mentioned the "24 month rule" yet which is cruical here, if this arrangement has been properly set up by whoever your partner is working through. In my view it is 90% likely travel from home to the plce of work is allowable.

http://www.hmrc.gov.uk/manuals/eimanual/eim32080.htm

But not if OP's partner is using an umbrella or agency and intends to only do one assignment - her workplace will automatically become a permanent one regardless of duration, overriding the 24 month rule.

http://www.hmrc.gov.uk/manuals/eimanual/eim32125.htm

Where a worker provides his or her services through an agency and the agency legislation in Section 44 ITEPA 2003 applies, each agency contract is treated as a separate employment, see ESM2000 onwards. Therefore, where there is only one workplace for an agency contract that workplace will be a permanent workplace for that employment.

http://www.hmrc.gov.uk/manuals/eimanual/EIM32130.htm

MataNui

If she has done or will do a few different jobs through that agency (since she is PAYE she is classed as an employee of the agency) then it could be classed as a 'temporary' place of work and she can claim mileage. If though the job through the agency is ONLY at that place (the agency has employed her to work there but when the contract is up her employment with the agency also ends) then that is not a 'temporary' place of work (it is simply temporary employment) and she cant claim.

The way it seems to me is that she is an employee who will be working at a fixed location will be her 'permanent' place of work so wont be able to claim.