Inland Revenue Dilema: Help me reduce my tax bill

DJPsychs

Hi, I’ve got a major dilemma and require urgent assistance from all the experts out there at moneysavingexpert.com: I’m currently filling in my tax return.. ???, I haven’t got an accountant and I cant get to grips with the Inland Revenue >:(.. Can anyone get their heads around the following and help save me some money; it all seems to be going down a big plughole at the moment and i've hit another wall.

Although being self-employed and generally work from home, I have recently been working as a sub-contractor/consultant for a company based over 30 miles away. Each morning I’d head to the office to collect the daily info and process reports before heading out into the field to meet clients. The company paid me 34p per mile to conduct my field visits from there headquarters but not from my home/self employment base.

Question 1: Does anyone know if i am I entitled to claim the 40p per mile Inland Revenue allowance for travelling to and from my base of normal self-employment (as stated on the tax return) to the companies headquarters prior to going out in the field?

Question 2: Although paid 34p per mile as a sub-contractor for field visits, can I claim 40p per mile when completing the tax return and thus gain a bit extra for expenses?

If the answers to both of the above are yes, you could help stop the taxman from cleaning me out and I’ll send you all a postcard from the Balearic Islands.. ;D

Any rapid answers would be useful, as I need to get the assessment form in within the next day or so. Cheers, it’s much appreciated…

Unbelievable_2

Re question 2:

IMO if you have done 10000 miles or less you can claim the difference in mileage allowance ie. 40p - 34p per mile. If you have done more than 10000 miles you owe them money ie 34p-25p per mile.

Re Question 1:
tricky - the IR aren't exactly crystal on what constitutes a temporary workplace, it seems to depend on how long you did the work for, how regularly and what you do when you get there. The best thing is to check with your Tax Office. If it's deemed to be a temporary workplace you can claim the 40p/25p for that mileage as well.

DJPsychs

Unbelievable, thanks for the advice:

My business mileage is below 10000 miles, i've got a 1.9 car which = 40p per mile so i can get the difference on that, excellent... ;D

In terms of the IR and the temporary workpace, mmmmm, I must have spent in excess of 60% of the time just calling into the office to line up a few meetings and pick up equipment before heading out and about. I'd then spend days at home then go back to the office to make more calls, file reports and have the odd meeting... Its a tricky one, i shall check with the IR, ahhhh....

Cheers again, its back to the tax return, ohhh joy...

cosyc

You should include the mileage recieved as part of your turnover figure then claim at 40p a mile in the motoring expenses box.

However if the tax office know you receive mileage will they question if you are self employed?