Contract Interview Mileage

[BS1397]

OK, so I got a query from my accountant because I was a naught boy and claimed XXX legitimate mileage to attend a few Contract interviews, s/he also kindly mentioned that I could try asking for a contribution from the Client/Agency .

Well I checked out the forums and the help notes and as far as I can see; Since I am a Limited Company Director, I would be failing in my duty if I don't go out there to Sell the company's services, and if that involves several Business Development Meetings "interviews" to evaluate my potential successful delivery to the Client then so be it. So in effect I am acting as a Salesman.

Unfortunately, being a couple of hours drive away from London does clock the miles for every "Sales Pitch", so I have replied explaining that and also the above, and hopefully I can get an opinion in writing from my Local Tax Office (Any bets?), then forward to the Accountant in case there is genuine concern that the mileage clocked whilst benched will attract HMRC Scrutiny?

I know most of you here have had to deal with this at some point so I thought any extra up to date feedback might come in handy.

Thank you.

[stek]

OK, so I got a query from my accountant because I was a naught boy and claimed XXX legitimate mileage to attend a few Contract interviews, s/he also kindly mentioned that I could try asking for a contribution from the Client/Agency .

Well I checked out the forums and the help notes and as far as I can see; Since I am a Limited Company Director, I would be failing in my duty if I don't go out there to Sell the company's services, and if that involves several Business Development Meetings "interviews" to evaluate my potential successful delivery to the Client then so be it. So in effect I am acting as a Salesman.

Unfortunately, being a couple of hours drive away from London does clock the miles for every "Sales Pitch", so I have replied explaining that and also the above, and hopefully I can get an opinion in writing from my Local Tax Office (Any bets?), then forward to the Accountant in case there is genuine concern that the mileage clocked whilst benched will attract HMRC Scrutiny?

I know most of you here have had to deal with this at some point so I thought any extra up to date feedback might come in handy.

Thank you.

That's rubbish, sack your accountant.

[Sally@InTouch]

OK, so I got a query from my accountant because I was a naught boy and claimed XXX legitimate mileage to attend a few Contract interviews, s/he also kindly mentioned that I could try asking for a contribution from the Client/Agency .

Well I checked out the forums and the help notes and as far as I can see; Since I am a Limited Company Director, I would be failing in my duty if I don't go out there to Sell the company's services, and if that involves several Business Development Meetings "interviews" to evaluate my potential successful delivery to the Client then so be it. So in effect I am acting as a Salesman.

Unfortunately, being a couple of hours drive away from London does clock the miles for every "Sales Pitch", so I have replied explaining that and also the above, and hopefully I can get an opinion in writing from my Local Tax Office (Any bets?), then forward to the Accountant in case there is genuine concern that the mileage clocked whilst benched will attract HMRC Scrutiny?

I know most of you here have had to deal with this at some point so I thought any extra up to date feedback might come in handy.

Thank you.

In my opinion, this is a genuine business expense, wholly and exclusively incurred (assuming it was!) in attempting to source work for your business, and therefore an allowable deduction against corporation tax.

[BS1397]

That's rubbish, sack your accountant.

Not always an option, at least not until the full E.O.Y accounts are filed else it could be a costly mistake. I have to be diplomatic and get HMRC to confirm what I know to be correct and present that as an up to date advice from them so that s/he doesn't lose face or get annoyed at my questioning. It may well be that they were being overcautious? But this surprises me as this accounts dept is part of a well known Umbrella looking after my Ltd Co. so I expected them to be well used to this kind of expense.

[BS1397]

In my opinion, this is a genuine business expense, wholly and exclusively incurred (assuming it was!) in attempting to source work for your business, and therefore an allowable deduction against corporation tax.

Yes you are right, I agree.

The mileage is genuine, I base it on Google Map and checked against Tom-Tom. If I am audited then I could then demonstrate and prove the figures backed up by appointment emails and directions from the agencies. I estimate 7~8 Client interviews for every 1000 miles of driving, it is not like I live in London and just could nip to the City for an hour or so?

[cojak]

Yes you are right, I agree.

The mileage is genuine, I base it on Google Map and checked against Tom-Tom. If I am audited then I could then demonstrate and prove the figures backed up by appointment emails and directions from the agencies. I estimate 7~8 Client interviews for every 1000 miles of driving, it is not like I live in London and just could nip to the City for an hour or so?

Save your emails that relate the meetings and append them to your mileage claims.

That way you have an audit trail.

[BS1397]

Save your emails that relate the meetings and append them to your mileage claims.

That way you have an audit trail.

Good advice. Thanks. I keep these details as an entries in my expenses spreadsheet.

[BolshieBastard]

OK, so I got a query from my accountant because I was a naught boy and claimed XXX legitimate mileage to attend a few Contract interviews, s/he also kindly mentioned that I could try asking for a contribution from the Client/Agency .

Say what!?

Claiming mileage for interview is a legitimate expense. You need to sack s\he off.

Do they deem you IR35 caught on every contract too?

[Wanderer]

OK, so I got a query from my accountant because I was a naught boy and claimed XXX legitimate mileage to attend a few Contract interviews

Just tell them "I can confirm that the claim is for actual expenses incurred in the course of visiting prospective clients and they are wholly and exclusively for business purposes. As such I am instructing you to process the expense claim. Thank you very much for your query and please do let me know if there is anything else you would like clarification of."

As others say, it would be prudent to keep records (meeting invitations, job specifications, company contact names) in case you ever have to justify it to HMRC. If it so happens that you caught up with a few mates in London town after the interview then that's your business and the expenses for the business related parts of the travel are still allowable. Last time I checked, the director ran the company and not the accountant....

[BS1397]

Thanks for all the helpful feedback, all of which is in line with the real world we live in, a contractor with a limited company is hardly going to employ staff to "get him work" and if that happens then it will cost a lot more than any mileage expenses to do the job in person.

I will return with an update next week. Have a good weekend.