Self-employed travel expenses question

Fretful · 20 June 2018 at 5:18PM

Hi, I am a new member and this is my first post so hope this is the appropriate place to make it - admins please put me right if I have got it wrong!

I am a sole trader and work mostly from home, doing repairs and making small specialist parts. But I spend between 1/3 and 1/4 of my time doing repairs for one client on his premises. I have regular times for doing this, but it is flexible - there is never a problem if I need to change days or do less one week and make it up the next for example.

Having tried to figure it out myself using HMRC guidance, I am confused about whether my travel costs to this customer are allowable expenses. On the one hand they suggest that you can claim travel expenses if it is not your normal base, and on the other hand they suggest that travel costs are not allowable if it is part of your regular working routine. Just in case it makes any difference, the travel costs come out of my own pocket, the client does not make any allowances for them.

Can anyone shed any light on this for me?

Thanks in advance!

Pennywise · 20 June 2018 at 7:32PM

It is a very difficult area. There are lots of examples on HMRC website as to what's allowable and what isn't but usually you can't fit yourself exactly into their examples.

One tax specialist gave an interesting take on it at a course recently, which was basically all about habitual nature. I.e. if you have a regular pattern of visiting clients over a relatively long timescale, then it's not allowable. I.e. if you usually go to premises x on Mondays, then it's not allowable, or if you usually go to premises y on Monday & Tuesday of the second week of each month, it's not allowable. He was suggesting a good test is whether people expect you to be at a particular place on a particular day.

Aquamania · 21 June 2018 at 11:30AM

Fretful wrote: »

Hi, I am a new member and this is my first post so hope this is the appropriate place to make it - admins please put me right if I have got it wrong!

I am a sole trader and work mostly from home, doing repairs and making small specialist parts. But I spend between 1/3 and 1/4 of my time doing repairs for one client on his premises. I have regular times for doing this, but it is flexible - there is never a problem if I need to change days or do less one week and make it up the next for example.

Having tried to figure it out myself using HMRC guidance, I am confused about whether my travel costs to this customer are allowable expenses. On the one hand they suggest that you can claim travel expenses if it is not your normal base, and on the other hand they suggest that travel costs are not allowable if it is part of your regular working routine. Just in case it makes any difference, the travel costs come out of my own pocket, the client does not make any allowances for them.

Can anyone shed any light on this for me?

Thanks in advance!

It's probably best to start here to check that MHRC consider you self employed for this particular role.
https://www.tax.service.gov.uk/check-employment-status-for-tax/setup

Note: HMRC may accept you are self employed for the toles you carry out at your own home, but employed for the specific role you carry out at this client's premesis.

You cannot offset against tax commuting costs to and from your main place of work (even if it is only part-time employment)

If you are truly self employed for this role, why not simply up your prices to include the cost of travel to and from the client, if they insist the work is carried out at their location (or the nature of the work makes it a necessity to)?

Self-employed travel expenses question

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