Help with tax expenses for self employed

SpiderLegs

luke_mersh wrote: »

I have been reading that I wont be able to claim millage as its classed as a permanent place of work, as I work there every day, is this true? I have only been logging travel to work(ie- meeting with client) but not my return home- I am still unsure about millage.

Correct.

Travel to and from a permanent or regular place of work is not claimable.
If you have to drive elsewhere (e.g. an off site meeting) then you can claim that.

For reference - BIM 37620 and 47700 deal with this.

luke_mersh

Thanks for the clarification.


I will speak with HMRC tomorrow as it seems that at this place of work i am classed as a worker, although according to a website they class me as self employed.

Really confusing at the moment.


I get paid weekly and I bill them for the work carried at the agreed amount, I invoice them with my company details.


According to 00ec25's link the HMRC class me as employed.


I shall call them tomorrow just to know for after April.

pramsay13

SpiderLegs wrote: »

Correct.

Travel to and from a permanent or regular place of work is not claimable.
If you have to drive elsewhere (e.g. an off site meeting) then you can claim that.

For reference - BIM 37620 and 47700 deal with this.

If you are genuinely self-employed you can claim all your mileage conducted in the course of your business, so even if you travel to the same place every day you can still claim this as self-employed mileage as long as you will not be working there for more than 2 years. If there is an agreement in place that you will be there for more than 2 years it becomes your permanent place of work and therefore the commute is not deductible.

It might be worth posting details of your agreement / contract and let others help you decide if you are an employee / self-employed.

luke_mersh

I have no contract with them in writing just verbal, the vacancy was for full time, so I am thinking that it will be longer than 2 years I hope.


With regards to myself I am a registered sole trader/ Self employed Web Developer.
I registered my business with HMRC in July.

SpiderLegs

pramsay13 wrote: »

If you are genuinely self-employed you can claim all your mileage conducted in the course of your business, so even if you travel to the same place every day you can still claim this as self-employed mileage as long as you will not be working there for more than 2 years. If there is an agreement in place that you will be there for more than 2 years it becomes your permanent place of work and therefore the commute is not deductible.

Can you provide a source for this as I discussed this exact subject with HMRC last week.
The references and information I gave were provided by them.

DoctorStrange

"OP said they are acting as self employed so IR35 is completely irrelevant as it only applies to people working through intermediaries."

He is working for the client through his own intermediary...

00ec25

luke_mersh wrote: »

I get paid weekly and I bill them for the work carried at the agreed amount, I invoice them with my company details.

luke_mersh wrote: »

With regards to myself I am a registered sole trader/ Self employed Web Developer.
I registered my business with HMRC in July.

DoctorStrange wrote: »

He is working for the client through his own intermediary...

since OP appears confused as to whether he is sole trader or a company, you cannot make such a statement with conviction as yet

is he a limited company or is he merely passing himself off as an: & Co?

i also note OP now says the people paying class him as a "worker"
that is significant because it does have a specific meaning in employment law - see link in post #8 - and so once more he needs proper advice on what his exact status is because it can be different between employment law and tax law

DoctorStrange

"since OP appears totally confused as to whether he is sole trader or a company, you cannot make such a statement with conviction as yet"

True, but OP seems clear he's been asked to invoice through his limited company and it's that which is worrying me.

Reading between the lines it seems to me that the client wants an employee, but doesn't want to pay employee costs, which pushes all risk onto the OP....

Dazed_and_confused

but OP seems clear he's been asked to invoice through his limited company and it's that which is worrying me.

But in one post the op said,

With regards to myself I am a registered sole trader

Unless maybe he is registered as a sole trader for some other enterprise and the one this thread is about is a limited company??

Overall the op seems to refer to self employment more than the "my company" references but as we all know there are no shortage of posters on here who claim to be "self employed" and eventually change their story to running a limited company.

All very confusing.

DoctorStrange

Yeah, very confusing!

I think though he mentioned that also does some freelance web development, so I took that as being under his 'sole trader' guise.

Then, when he applied for this job, they told him it'd be on a self-employed basis and hence he needs a limited company, which I think is being mixed up with his sole trader status.

I guess the only advice we can offer just now is for OP to seek absolute clarity over the arrangements.