Attention Accountants, Fuel Card Question

[KingRichard]

My drivers are all self-employed. At the moment we pay for their fuel (ie: we re-imburse them on production of a VAT receipt).

Will it affect their self employed status to provide the VEHICLE with a fuel card? The fuel put in the vehicle is only used for business mileage for hire and reward.

It would just tidy up our accounts and save a whole load of administration if we could do it without affecting the drivers status.

I do realise it's 'providing the tools to do the job' etc, which is why I'm unsure.

Our accountant hasn't responded to emails since new year and I'm losing my patience with them

Cheers
Dave

[thewave]

KingRichard said:

My drivers are all self-employed. At the moment we pay for their fuel (ie: we re-imburse them on production of a VAT receipt).

Will it affect their self employed status to provide the VEHICLE with a fuel card? The fuel put in the vehicle is only used for business mileage for hire and reward.

It would just tidy up our accounts and save a whole load of administration if we could do it without affecting the drivers status.

I do realise it's 'providing the tools to do the job' etc, which is why I'm unsure.

Our accountant hasn't responded to emails since new year and I'm losing my patience with them

Cheers
Dave

What's the arrangement with them? Car rental etc?

[KingRichard]

thewave said:

KingRichard said:

My drivers are all self-employed. At the moment we pay for their fuel (ie: we re-imburse them on production of a VAT receipt).

Will it affect their self employed status to provide the VEHICLE with a fuel card? The fuel put in the vehicle is only used for business mileage for hire and reward.

It would just tidy up our accounts and save a whole load of administration if we could do it without affecting the drivers status.

I do realise it's 'providing the tools to do the job' etc, which is why I'm unsure.

Our accountant hasn't responded to emails since new year and I'm losing my patience with them

Cheers
Dave

What's the arrangement with them? Car rental etc?

We pay for the lot. They take 40%. It's that simple

[smartie]

i think their self employed status is very dodgy already, this would make it worse.

DO they work when you want or they want?
Do they pay their own insurance?
Holiday/sick pay?
Other work elsewhere?
etc etc

[davea3]

Hi

I work for a company, we are in the same situation basicly we where told that only people who are employed full time can carry fuel cards or vans/cars owned by the company can have fuel cards with them, paying the fuel is all part of the subbies job providing a service to carry out the job you asked them to do.

We get them to quote for a specific job, exactley how much they want to be paid this also includes there travel expenses we pay 35p per mile which is quite low compared to what some pay.

also by them quoting you can raise a purchase order for that job, trust me it all helps to keep the tax inspetors happy, all helps to cover your back.

Dave

[KingRichard]

smartie said:

i think their self employed status is very dodgy already, this would make it worse.

DO they work when you want or they want?
Do they pay their own insurance?
Holiday/sick pay?
Other work elsewhere?
etc etc

They choose hours.
We pay insurance.
No Holiday or Sick Pay.
Other work is entirely up to them...

[davea3]

do you tax them at point, or is it down to them

[KingRichard]

davea3 said:

do you tax them at point, or is it down to them

down to them...

[Eric Mc]

KR - no one thing will decide whether they are "Employed" or "Self Employed". It's the build up of factors which will make the Revenue come to a conclusion either way. Look on it as a "nails in coffin" scenario. Providing them with one more "employee" type "benefit/expense" will pull the argument in the direction of "employees" rather than "self employed".

Edited by Eric Mc on Monday 14th January 16:53

[KingRichard]

Eric Mc said:

KR - no one thing will decide whether they are "Employed" or "Self Employed". It's the build up of factors which will make the Revenue come to a conclusion either way. Look on it as a "nails in coffin" scenario. Providing them with one more "employee" type "benefit/expense" will pull the argument in the direction of "employees" rather than "self employed".

Edited by Eric Mc on Monday 14th January 16:53

Ok...

Any chance I can PM you quickly?

[thewave]

KingRichard said:

smartie said:

i think their self employed status is very dodgy already, this would make it worse.

DO they work when you want or they want?
Do they pay their own insurance?
Holiday/sick pay?
Other work elsewhere?
etc etc

They choose hours.
We pay insurance.
No Holiday or Sick Pay.
Other work is entirely up to them...

I don't deal with any taxi firms, but here's a scenario.

It's a similar situation (don't laugh) to rent a chair hairdressers. They use salon staff, salon phone number etc, but in order to claim self employed status, they must bank all income, and pay over the percentage agreed as a service charge to the salon. A flat rate rent should also be paid to show they are actually renting the chair/space, and not all income is a flat rate percentage deducted. Hours are determined by the person, not the salon. Holiday/Sick pay not paid. Insurance must be paid individually.

I see no issue whatsoever with the fuel cards if you're satisfying the above.

This was all agreed with the IR and federation of hairdressers, and was something I was helping with, as one of my clients was consulted with respect to this.

My opinion is that the cars can be insured by you, but they should have their own public liability insurance.

Hopefully that's helpful.

[Eric Mc]

PM away.