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  • FIRST POST
    • CraggyRockFace
    • By CraggyRockFace 20th Jun 14, 4:36 PM
    • 35Posts
    • 5Thanks
    CraggyRockFace
    Self employed - Charged mileage to client
    • #1
    • 20th Jun 14, 4:36 PM
    Self employed - Charged mileage to client 20th Jun 14 at 4:36 PM
    Hello,

    Second question today on my self assessment tax return.

    My self employed accounts are very simple.

    I only earned one lump sum in the 13-14 tax year - for 1400, which was for 7 days work for a client. I had to drive to the location of the job, which was a total of 76 miles overall. I charged this cost to the client at 45p per mile, which was 0.45 x 76 = 32.20

    So the client paid me a total of 1400 + 32.20 = 1432.30

    So in my self assessment do I put my turnover as 1400 or 1432.20?

    And in my expenses do I just put the 32.20 cost of the mileage which was my only expense?

    So this logically leaves me with a net profit of 1400?

    The only reason I wasn't sure about putting the mileage cost into the turnover section, was because it doesn't sound like "takings, fees, sales or money earned by your business".

    I know this is such a simple question, but I don't know what the rules are. Most of the examples seem to assume you will pay your petrol expenses as part of your business, and not be claiming them back from a client, which is what I'm doing.

    Thanks,
Page 2
    • skivenov
    • By skivenov 23rd Jun 14, 9:35 AM
    • 2,166 Posts
    • 2,435 Thanks
    skivenov
    You may want to check with HMRC if such travel cost is tax deductable.

    Ordinary commuting is not tax deductable.

    As I understand it, you only worked 7 days last year in regards to this business venture, and all work was carried out at the same location.
    Originally posted by Game_Over
    Nope, self employed, so business mileage is business mileage regardless of where you're going. The only exception is if you have premises of your own and commute there.
    Yes it's overwhelming, but what else can we do?
    Get jobs in offices and wake up for the morning commute?
    • Game_Over
    • By Game_Over 23rd Jun 14, 10:33 AM
    • 116 Posts
    • 48 Thanks
    Game_Over
    Nope, self employed, so business mileage is business mileage regardless of where you're going. The only exception is if you have premises of your own and commute there.
    Originally posted by skivenov
    Source?

    If a self-employed person has a base of operations that is separate to their home, then the cost of travelling between home and that base will be treated as ordinary commuting and therefore is not tax deductible.

    However, where a person’s base of operations is at their home then the cost of travelling between their home and where work is carried out should be allowable. Difficulties can arise in determining whether there is a specific ‘base of operations’ and where this is. Claims for relief which are later challenged by HMRC could prove costly. It would certainly appear that HMRC are paying more attention to this area as a number of disputes between them and self-employed persons have been presented over the last 6 months at the First Tier Tax Tribunal. Therefore the crucial point is to establish precisely where the base of operations is. Each case will clearly depend on its own merits but in recent cases the fact that business records were kept and written up at home, that tools of the trade and equipment were kept at home and that new work was sourced from home were all contributing factors taken into account in determining where the base of operations was.
    http://www.johnsontidsall.co.uk/newsletters/summer2011_travel/index.htm

    Also:
    The position is rather different where a trader works at one or two different sites only during the year – for example a construction subcontractor working on the Olympic stadium. This is the normal pattern of his business, so the one or two sites will be the normal working place for the subcontractor. As such, the cost of travelling between the subcontractor's home and such business ‘bases’ should be disallowed because it is just ordinary commuting.



    Anyway, the OP has now changed their story so it's all a mute point

    But I still stand my my suggestion for anyone to contact HMRC where they require clarification. Much better than relying on possibly unreliable posts by anonymous users found on the internet.
    Last edited by Game_Over; 23-06-2014 at 10:49 AM.
    • zygurat789
    • By zygurat789 23rd Jun 14, 11:43 AM
    • 4,229 Posts
    • 1,993 Thanks
    zygurat789
    Source
    But I still stand my my suggestion for anyone to contact HMRC where they require clarification. Much better than relying on possibly unreliable posts by anonymous users found on the internet.
    Originally posted by Game_Over
    I don't dispute that so here's a suggestion.

    You contact HMRC and ask them the question and come back here and post the reply then we'll all know.
    The only thing that is constant is change.
    • skivenov
    • By skivenov 24th Jun 14, 1:26 PM
    • 2,166 Posts
    • 2,435 Thanks
    skivenov
    Source?
    Originally posted by Game_Over
    Bit of ketchup, but not on the chips ta.
    Yes it's overwhelming, but what else can we do?
    Get jobs in offices and wake up for the morning commute?
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