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When is business mileage not allowable?

  • Member PM.Dip
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  • 44 posts
  • # 78812

I have a new client who works as a builder, some purely as self employed and some under CIS (with deductions made). The 'jobs' range from a few hours, a few days or sometimes a few months.  

Does anyone have any advice on what would count as allowable business mileage.  He can provide evidence of having travelled to each place, but I was wondering for which of the trips he could claim mileage.  I'm assuming for the small self employed jobs claiming is not a problem, but do the longer 'jobs' count as a regular commute?

He doesn't want to claim anything he isn't owed, and is keen to declare all his income.  However, the mileage allowance makes a big difference to taxable income, so I want him to be able to deduct what he is eligiable for.

Lucy

 

  • Member PM.Dip
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  • 44 posts
  • # 78925

Hi all,

I thought I'd attempt to answer my own querry.

As far as I can tell, some one who is self employed (either as a sub contractor or not) can claim for business mileage when travelling to temporary work place, and it is considered temporary if the contract/job is less than two years.  For my client no contract/job last over three months, so as far as I can tell he can claim all the mileage that he can show was for business use.

If anyone knows differently then please let me know

He saw first saw me on Thursday, acknowledges that he will miss the SA deadline - but needs the figures for tax credits by Tuesday!  

The mileage will make a huge difference to his taxable income! 

  • 1159 posts
  • # 78927

I would agree with your thinking.  If his place of work is his home address then business mileage will count for every mile he does from there for a business purpose.  

Kris 

  • Member PM.Dip
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  • 44 posts
  • # 78928

Thanks Kris,

It's reassuring that someone else considers it OK to claim the mileage.

My client is now very happy - it means he is owed money from the HMRC in the form of tax credits - so far his tax credits have been calculated on income before any allowable expenses are deducted.

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