mileage expenses and 'normal' base locations
Discussion
i am a consultant working for a consulting organisation. I tend to work my days on client sites rather than in the offices of my employer. I've never worked with any client for any particularly long continuous period of time, but I have with my current one. My employer deducts the distance from my home to my nominal 'base' location of theirs (even if I never go there), so I can only claim mileage expenses if the client site is further away from my house than that. I am told however that I can use a P87 or self assessment to submit details of the deducted miles, and offset those against tax, IF and only if I've been going to that place for less than 2 years (it all gets a bit bendy if you've been going to the same place for longer). Can anyone confirm if this is OK? I need to dig back through the archives if so! Thanks
here's a question - how long a period do you have to spend NOT doing a particular journey every day (after the "knowing you'll be there for 2 years" thing) before HMRC acknowledge it's not your normal journey anymore and you can start doing it again?
I mean it's a bit daft this, it's hardly tax avoidance. I imagine it's to tackle scenarios where someone is headhunted for a specific role miles away from their home, and to sweeten the deal the employer says they can claim expenses to travel to and from work. Then it's tax free earnings. For me it's just reimbursement of genuine cost associated with being put on a project which I did not choose, as such! My base is 6 miles away; if i went there I'd drive and park for free, so anything above that should be claimable, i reckon.
I mean it's a bit daft this, it's hardly tax avoidance. I imagine it's to tackle scenarios where someone is headhunted for a specific role miles away from their home, and to sweeten the deal the employer says they can claim expenses to travel to and from work. Then it's tax free earnings. For me it's just reimbursement of genuine cost associated with being put on a project which I did not choose, as such! My base is 6 miles away; if i went there I'd drive and park for free, so anything above that should be claimable, i reckon.
ok seem to have run up against a problem here...
if you've done over 10k business miles a year i think it ceases to be fruitful to claim the home to base deduction unless you get way below 45p a mile from your employer for some or all of those miles through expenses. The miles over 10k I did get 45p each for, but HMRC decided I should have only received 25p, so the home to base claim brought us back up to evens.
if you've done over 10k business miles a year i think it ceases to be fruitful to claim the home to base deduction unless you get way below 45p a mile from your employer for some or all of those miles through expenses. The miles over 10k I did get 45p each for, but HMRC decided I should have only received 25p, so the home to base claim brought us back up to evens.
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