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New to Contracting, advice on mileage and travel

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    New to Contracting, advice on mileage and travel

    Hello,

    I am new to Contracting after leaving 21 years of full time employed work. I have also just signed up with an Umbrella company.

    The distance to work from my house is over 250 miles one way,I will working 5 days a week and want to go home most weekends (leave Friday evenings returning Sunday evenings). I can claim mileage paid @ 45p a mile for the first 10,000 miles.

    However, I have an old car that need some money spending on it, ideally I would like to change this.

    I would like help with some of the following options,which will get me the most money, the pro and cons, any other options and anything else to consider etc.

    I will be able to provide receipts for all the options. Apologies if some of this information is incorrect.

    1. Keep car and make the 500 mile journey at the weekends and get reimbursed - £225.00 (total 11 hours of driving there and back).

    2. Go on the train, claim taxi fare to the station and then taxi from train station to home and vice versa, approx cost £130 to £160 (approx 9 hours time - there and back)

    3. Get a taxi to the airport, fly, get another taxi from the airport to my home and vice versa, approx cost £160 to £250 (will take approx 4 hours there and back)

    4. Get a car on 6 month hire purchase, say at £400 per month, claim 5/7 amount back and claim mileage as no.1 above.

    5. Buy another car, will cost around £5000, I pay for this out of my own pocket and claim mileage like no.1 above

    5.Get car rental - not sure about this option.

    Any more options???

    All advice is greatly appreciated.

    Thanks

    Niaz

    #2
    What's this claiming 5/7 back?

    Comment


      #3
      What you have to remember, with any of these options, is that you will only get tax relief on the costs and the money will have to come out of your pocket in the first place
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      Comment


        #4
        Originally posted by stek View Post
        What's this claiming 5/7 back?
        Ohh, I get it now, you think you can hire a car, claim 5/7th's of it as an expense on the assumption 5 days of it are work related only AND claim the mileage.

        Get real lol!

        Comment


          #5
          Originally posted by stek View Post
          Ohh, I get it now, you think you can hire a car, claim 5/7th's of it as an expense on the assumption 5 days of it are work related only AND claim the mileage.

          Get real lol!
          What Stek is trying to explain, is that mileage includes wear and tear on YOUR car. So when using a hire car you wouldn't be able to claim the 45 pence per mile as you would with your own car.

          Comment


            #6
            Originally posted by niaz7 View Post
            1. Keep car and make the 500 mile journey at the weekends and get reimbursed - £225.00 (total 11 hours of driving there and back).

            2. Go on the train, claim taxi fare to the station and then taxi from train station to home and vice versa, approx cost £130 to £160 (approx 9 hours time - there and back)

            3. Get a taxi to the airport, fly, get another taxi from the airport to my home and vice versa, approx cost £160 to £250 (will take approx 4 hours there and back)

            4. Get a car on 6 month hire purchase, say at £400 per month, claim 5/7 amount back and claim mileage as no.1 above.

            5. Buy another car, will cost around £5000, I pay for this out of my own pocket and claim mileage like no.1 above

            5.Get car rental - not sure about this option.

            Any more options???
            6. Go on the train, drive to the station and claim the mileage and the parking.

            7. Drive to the airport, claim the mileage and the parking, fly

            8. Walk to the train station, catch the train.

            9. Catch the bus to the train station, catch the train.

            10. Catch the bus to the airport, fly.

            11. Get your partner to drive you to the station, claim the mileage one way, catch the train. Have your partner collect you from the station, claim the mileage back home.

            12. Get your partner to drive you to the airport, claim the mileage one way, catch the train. Have your partner collect you from the airport, claim the mileage back home.

            There are plenty of options. Personally, I'd go by train for the bulk of the journey - the rest is just incidental.
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            Comment


              #7
              Thanks everyone for your advice and the clarification

              However, I do need to replace my car and may explore the hp/contract hire option for 6 months, would I be able to claim any mileage? Anyone know of some good deals?

              If I don't get anywhere with the above option, I will start off with the train (it will me 5 hours to get home though) and then look at booking flights in advance and take this option - the key thing is I can be home in 2 hours.

              I am new to all this and learning - I will now keep receipt for everything

              Comment


                #8
                Originally posted by niaz7 View Post
                The distance to work from my house is over 250 miles one way,I will working 5 days a week and want to go home most weekends (leave Friday evenings returning Sunday evenings). I can claim mileage paid @ 45p a mile for the first 10,000 miles.
                Distance to work is about 30 feet downstairs to the office. Distance the client is 250 miles....

                You can also claim mileage at 25p over 10k but I am sure you knew that.

                The question you don't seem to be asking is.. Forgetting the contract what do you want to do about a car personally? For 500 miles a week I wouldn't let my tax situation override my personal car choices. Do you WANT a better car for ferrying the kids around and enjoy driving or are you happy to run an old banger for maximum profit? Contracts tend to be short term so I wouldn't be making decisions on something I might keep for 2-3 years based on one contract. You are gonna be stuffed if you get a lease and get canned first week (which is highly possible).

                You are new to contracting, one gig isn't a career. Working away is hard enough as well, buggering about with trains and taxis isn't going to help IMO.
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                Comment


                  #9
                  Originally posted by niaz7 View Post
                  However, I do need to replace my car and may explore the hp/contract hire option for 6 months, would I be able to claim any mileage?
                  If it's your car, then you can claim mileage. If it's a company car, then you can't.

                  Originally posted by niaz7 View Post
                  If I don't get anywhere with the above option, I will start off with the train (it will me 5 hours to get home though) and then look at booking flights in advance and take this option - the key thing is I can be home in 2 hours.
                  The advantage that a train or a plane gives you is that you can't be expected to suddenly stay late - if you have driven, then people can ask you just to take a quick look at something just as you are about to walk out the door, or call you into a three hour meeting when you are meant to be on the road; if you have a train or a plane to catch they don't do that because you have to be somewhere at a given time.

                  On occasion when I've been staying in town over the weekend, I've never told people and still buggered off at my normal Friday afternoon slot and put my feet up away from the office instead
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                  Comment


                    #10
                    Originally posted by northernladuk View Post
                    Distance to work is about 30 feet downstairs to the office
                    How tall is your house??? Even with eight feet ceilings, that's four storeys.
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