Accountant does not want me to claim mileage

[stabilizers]

My accountants are in the process of doing my tax return. They do not want me to claim mileage for this year.
The claim is from my company premises which is also my home to my clients offices.
I started with the client just before the start of the last financial year on an initial 8 month contract and then a 3month extension. After that I was given a years extension which takes me over the 24 month rule. I plan to claim up to the day I got my new (existing) contract at the point I would be with the client for 24months or more.

I do have an office at home which is physically there and kitted out. It is not used for any other purpose. I do work for the client at home since I am in IT and any 'outages' are done out of hours. The work is carried out on my companies equipment and not the clients. This is usually 2-3 times per week and sometimes more.

The accountants view is 'In the case of ‘small service companies’ such as yours, HMRC are very reluctant to accept someone’s home as being their place of work'.

Is my accountant being over cautious against an investigation?
Would you agree I have a legitimate claim?

[SimonMac]

Hmmm, something does not sit right with this, 8mths + 3mths + 1 year is only 23mths, however I am led to believe that you must stop claiming as soon as you know you are going to go over 24 months, not when you have actually been there for 24 months.

I would seek professional advice though, what does your accountant say?

[Waldorf]

I would say you could claim upto when you expected that you would be there for 24+ months.

Have a look at this for greater detail - http://www.nixonwilliams.com/images/...nth%20Rule.pdf

[northernladuk]

You need to get a new accountant then. You seem to have the 24 month rule understood although to be pedantic you must stop claiming from the moment you know you are going to go over it which isn't necessarily the end of the last contract... but anyway a minor point...

I can't help but think his comments about HMRC not accepting home as a place of work pretty disturbing, particularly has HMRC allow you to claim £4 a week for a home office. Bet he hasn't factored that in to your return either.

How come it has taken him a year to spot this anyway? Do you not speak to him regularly or he sees your figures at some point during the year? What did he do last year?

I would guess this isn't a specialist contractor accountant so doesn't fully understand small PSC's. I would go have a look at this thread and pick yourself a new accountant

http://forums.contractoruk.com/accou...-requests.html

[TestMangler]

The accountants view is 'In the case of ‘small service companies’ such as yours, HMRC are very reluctant to accept someone’s home as being their place of work'.

Is my accountant being over cautious against an investigation?
Would you agree I have a legitimate claim?

I would seek professional advice though, what does your accountant say?

Ahem Mr Mac !!

[northernladuk]

Just a thought.... where was your previous client? The 24 month rule is about a geographical area, not an individual client. If you were in the square mile in London for example it would be from when you got your first gig there regardless of number of clients...

Just wondering as your accountant doesn't seem to be saying 24 month rule is a reason at all.

[northernladuk]

Ahem Mr Mac !!

Some people are just not cut out!!!

[SimonMac]

Ahem Mr Mac !!

Do I need a everytime?

[stabilizers]

I should clarify the last extension was for 14 months so taking me over the 24 months for sure.

[SueEllen]

The accountants view is 'In the case of ‘small service companies’ such as yours, HMRC are very reluctant to accept someone’s home as being their place of work'.

Is my accountant being over cautious against an investigation?
Would you agree I have a legitimate claim?

Unless you cannot do anything fee earning working at home i.e sending emails, writing documents then your accountant is talking crock.

You need to stop claiming from the time you knew your contract with that client would go over 24 months.

Also next time you have a new contract if it's possible see if you can get a few days working at home. I work at home randomly so I can work at home for 0-95% of a contract. Then if you happen to get a stupid accountant you can challenge them.