Simplified vehicle costs - self employed query

Bear777

Hi a quick question. I am in the process of becoming self employed. One of the bigger changes that I am trying to get my head around is vehicle expenses. I am purchasing a private vehicle and am proposing going down the simplified expenses route for claiming for vehicle costs. 

The question arises around the fact that I have been offered a long term consultancy opportunity (up to 5 years or so) It will involve driving on a daily basis (minimum 4 days and possibly 5 days a week) to a number of different premises 2 or 3 max. 

My query is more a sense check to ensure that it’s ok for me to claim for the mileage to these different locations given it will become a bit of a long term routine and it can’t be challenged in anyway by HMRC. 

Phoenix72

From the little information available I'm not sure HMRC would agree with the view you are self-employed in the first place.

Bookworm105

I assume you are a sole trader rather than an employee of your own Ltd co
perfectly possible to have more than one regular "place of employment" as a sole trader (ie commuting)

Bear777

Phoenix72 said:

From the little information available I'm not sure HMRC would agree with the view you are self-employed in the first place.

Why is that? I will be doing additional work for others alongside this and surely the issue is with the company that is providing me with the opportunity rather than any potential issue being mine as to whether I am self employed. There is no permanent job, they wish to bring me in, pay me a retainer and I am charging a day rate and the contract allows for a mutual break at anytime but it’s likely to be a longer term opportunity. I’d be a little foolish to turn this opportunity down…

Bear777

Bookworm105 said:

I assume you are a sole trader rather than an employee of your own Ltd co
perfectly possible to have more than one regular "place of employment" as a sole trader (ie commuting)

Yes I am a sole trader. Was just concerned that what may be limited locations would work against me. 

Jeremy535897

Although specifically aimed at subcontractors, this outlines the rules:
https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim37675

Grumpy_chap

Has the company offering the 5 year consultancy opportunity undertaken IR35 determination?

Bookworm105

Grumpy_chap said:

Has the company offering the 5 year consultancy opportunity undertaken IR35 determination?

not applicable, as now established he is a sole trader, not a Ltd, IR35 covers use of "intermediaries", ie Ltd Co

The exposure for "the company" is their liability for taxation under "CEST" (check employment status test), not IR35 

Jeremy535897

Bookworm105 said:

Grumpy_chap said:

Has the company offering the 5 year consultancy opportunity undertaken IR35 determination?

not applicable, as now established he is a sole trader, not a Ltd, IR35 covers use of "intermediaries", ie Ltd Co

The exposure for "the company" is their liability for taxation under "CEST" (check employment status test), not IR35 

Indeed. Partnerships can also be intermediaries, although the Lineker case shows that the legislation is deficient in this area.

Bear777

Bookworm105 said:

Grumpy_chap said:

Has the company offering the 5 year consultancy opportunity undertaken IR35 determination?

not applicable, as now established he is a sole trader, not a Ltd, IR35 covers use of "intermediaries", ie Ltd Co

The exposure for "the company" is their liability for taxation under "CEST" (check employment status test), not IR35 

Yes my understanding is that any query in regards to the employent status of this opportunity is a query/risk to the client and not to me as the contractor…

Bear777

Jeremy535897 said:

Although specifically aimed at subcontractors, this outlines the rules:
https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim37675

Thank you - this appears to be exactly what I am looking for!!! 

Cheers.