Contractor - Commuting Allowance?
Discussion
Hi all,
I've recently taken a job as a contractor for the first time, and I was wondering if you could give me a hand clearing up what I can and can't claim in terms of allowances. The useful facts:
- Aviation sector
- Currently operating as a sole trader but I'm not sure if this is the best option?
- Not a fixed term contract, though I can probably arrange to have one for the length of the company's current project (~12 months from now)
- Place of work is fixed, though occasional work at weekends for another company
- Roughly 80 mile round trip each day
As far as I can work out I need to deal with the 40% and 24 month rules for allowances on travel to a fixed place of work. My contract is currently open ended but 12 months is more likely, and 95% of the time I am travelling to the same location. So, the questions:
- Is it possible for me to claim the 45p/mile allowance on the journey each day?
- Is operating as a sole trader the best thing to do?
Thanks in advance,
Ben
I've recently taken a job as a contractor for the first time, and I was wondering if you could give me a hand clearing up what I can and can't claim in terms of allowances. The useful facts:
- Aviation sector
- Currently operating as a sole trader but I'm not sure if this is the best option?
- Not a fixed term contract, though I can probably arrange to have one for the length of the company's current project (~12 months from now)
- Place of work is fixed, though occasional work at weekends for another company
- Roughly 80 mile round trip each day
As far as I can work out I need to deal with the 40% and 24 month rules for allowances on travel to a fixed place of work. My contract is currently open ended but 12 months is more likely, and 95% of the time I am travelling to the same location. So, the questions:
- Is it possible for me to claim the 45p/mile allowance on the journey each day?
- Is operating as a sole trader the best thing to do?
Thanks in advance,
Ben
IANAA but I would suggest that your base of operation is fixed (well, you said it is) and sole traders can't claim for travel between home and their base of operation.
Also 24 month rule kicks in when you *know* the contract will last longer than 2 years, so theoretically could happen on day one of a 2 year contract.
And, stuck record that I am, fixed term contracts seem to me to be the worst of both permy and contract worlds.
Also 24 month rule kicks in when you *know* the contract will last longer than 2 years, so theoretically could happen on day one of a 2 year contract.
And, stuck record that I am, fixed term contracts seem to me to be the worst of both permy and contract worlds.
If you want to charge your customers an extra amount to cover travel costs that is a matter for you to decide and for you to agree with your customer.
As you are "self employed", you have the right to charge your customer whatever way you want - as long as you agree it with them as part of the commercial contract you have undertaken with them.
Business, for the most part however, do not "reclaim" expenses from their customers as such. They increase their invoices to ensure all their business costs are covered AND include a profit margin, of course.
There is no obligation to show the "expense" element of your fee as a separate item on your invoice either.
As you are "self employed", you have the right to charge your customer whatever way you want - as long as you agree it with them as part of the commercial contract you have undertaken with them.
Business, for the most part however, do not "reclaim" expenses from their customers as such. They increase their invoices to ensure all their business costs are covered AND include a profit margin, of course.
There is no obligation to show the "expense" element of your fee as a separate item on your invoice either.
Gassing Station | Jobs & Employment Matters | Top of Page | What's New | My Stuff