I have today been offered a contract. The only drawback is it is a bit of a journey to the client site. The agent phoned me and said that the client would pay me a mileage allowance of 52p per mile. Quite generous I thought!. So if I pocket this as expenses can I still claim the 40p (or whatever it is) per mile allowed by the IR? Is accepting a mileage allowance from a client IR35 friendly?
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No. Quite the opposite I'd say. Employees get mileage allowances, real business just invoice for expenses incurred. As a general rule, I never claim expenses from the client, always via an invoice.Originally posted by decodeHis heart is in the right place - shame we can't say the same about his brain... -
Shouldn’t make any difference. My barrister charged me mileage to and from his place of work (The High Court) I don’t think that will make him come under IR35.Originally posted by Mordac"A people that elect corrupt politicians, imposters, thieves and traitors are not victims, but accomplices," George OrwellComment
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ticking the stupid box on your annual PAYE returns puts you under IR35, nothing else. 'Tis but a state of mind.Comment
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The fact that the client pays yourco extra to cover the distance you have to travel is nothing to do with your personal expenses. Your personal expenses are between you and yourco. Pay yourself expenses for the travelling you do on yourco's behalf. Charge the client the extra for the mileage plus 17.5% VAT. Rejoice in the extra profit, and laugh at all the rest of us whose clients don't pay us to travel to their site.
Will work inside IR35. Or for food.Comment
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Which box? If you don't mind me asking (I'm new to this and haven't done any PAYE returns yet).Originally posted by pickleComment
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Its also called "should have asked my accountant box"Originally posted by DeadKennyComment
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That is what I thought. MyCo charges on a mile based rate. I then claim all of this that I can in order to get the money out of the company sans tax.Originally posted by VectraManThe fact that the client pays yourco extra to cover the distance you have to travel is nothing to do with your personal expenses. Your personal expenses are between you and yourco. Pay yourself expenses for the travelling you do on yourco's behalf. Charge the client the extra for the mileage plus 17.5% VAT. Rejoice in the extra profit, and laugh at all the rest of us whose clients don't pay us to travel to their site.Comment
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Box 6 on the P35 (Annual PAYE Return) that is due to the Revenue each year by 19th May.Originally posted by DeadKenny
If possible I would avoid claiming travel expenses and try and have the rate increased. If you do have to claim mileage then invoice the company and add VAT (if registered). You then claim mileage at the 40/25p rate from your company.
Any extra is left in the company as profit that can eventually be taken as dividends etc.
AlanComment
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