Contractor expenses
Contractor expenses
Author
Discussion

Tinohead

Original Poster:

639 posts

232 months

Sunday 5th September 2010
quotequote all
Quick question for anyone working as a contractor or any finance people. I'm currently running my own business as a sole trader, not a limited company. I've been offered a full time position with another company, working in one of their clients' offices, with the option of coming on as staff, or contracting to them through my own company.

What I'm wondering is, if I go on as a contractor, would I be able to claim the mileage of driving from my house (where my business is based) to the client offices everyday as a business expense?

Cheers,
Tino

VetteG

3,236 posts

267 months

Monday 6th September 2010
quotequote all
According to IR35, if you stay with the same employer for a long period (not specified, but most accountants reckon about 1 to 2 years) it becomes your normal place of work and therefore your travel expenses to and from work etc. are not deductable.

G

Tinohead

Original Poster:

639 posts

232 months

Monday 6th September 2010
quotequote all
So would that mean in the short term, the mileage could still be legitimately be claimed?

FamilyDub

3,587 posts

188 months

Monday 6th September 2010
quotequote all
I work in Accounting, for an agency, so I would say 'yes' to that.

Although, how long the mileage allowance goes on is something I would agree with them beforehand...

Tinohead

Original Poster:

639 posts

232 months

Monday 6th September 2010
quotequote all
FamilyDub said:
I work in Accounting, for an agency, so I would say 'yes' to that.

Although, how long the mileage allowance goes on is something I would agree with them beforehand...
Ok thanks for that. Who do you mean by 'them' though? Just to clarify, my question is whether I can put the mileage down as a business expense on my tax return, not whether I can claim it from the client.

istoo

2,365 posts

225 months

Monday 6th September 2010
quotequote all
I try excuses like this to justfy buying a V8 to the wife but its never worked yet!

FamilyDub

3,587 posts

188 months

Monday 6th September 2010
quotequote all
Tinohead said:
FamilyDub said:
I work in Accounting, for an agency, so I would say 'yes' to that.

Although, how long the mileage allowance goes on is something I would agree with them beforehand...
Ok thanks for that. Who do you mean by 'them' though? Just to clarify, my question is whether I can put the mileage down as a business expense on my tax return, not whether I can claim it from the client.
^^^ I must read posts' more closely! wink

The answer is still yes mate.

Tinohead

Original Poster:

639 posts

232 months

Monday 6th September 2010
quotequote all
Many thanks for the advice guys thumbup

cat220

2,762 posts

238 months

Tuesday 7th September 2010
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Keep in mind that you can claim 40p/mile up to 10,000 miles then 25p/mile.

Tinohead

Original Poster:

639 posts

232 months

Tuesday 7th September 2010
quotequote all
The amount I'm claiming will be well under that but thanks for the tip smile