Reply to: Claiming mileage monthly

[mudskipper]

OP, it sounds like you may well be caught by IR35. If this is the case, then from April you will not be able to claim back mileage, even within 24 months.

As others have suggested, you really should get an accountant. In the meantime, start with reading the advice on the right ---->

[john@UKCA]

Contractor Specialist

Yes agree with the posts above that a Contractor Accountant specialist is the way to go, however, not convinced that one of the 'big boys' provide the best the service!

Looking at set of accounts prepared by one of the 'big boys' at the moment (whom shall remain nameless) - have found 3 errors already the worst of which is a contract hire car shown as fixed assets. Just poor quality control by the Managers!

[psychocandy]

OP - Accountant now!!!!!!!!!!!!!!!!!!!!!

[northernladuk]

Still interested to know if the OP now understands he can't claim mileage....

[northernladuk]

I wish you'd stop spouting this tulip!

or at the very least couch it with "in my opinion".....

Many, many contractors use local accountants and are very satisfied with the service provided and are confident that the local accountant that they use has the requisite experience and knowledge.
Many, many contractors don't use online accountants for a variety of reasons - one of which being that they consider the face to face personal services of an accountant they "know" is better then the faceless box ticking of an office drone where all contractors are treated "the same" (I am NOT a number I am a free man!!).
My accounting needs are different from yours and I feel that they are best met by my local accountant.

Your opinion may differ and I am perfectly happy for you to make that decision for your company but it is your decision for your circumstances and not a blanket right/wrong for everyone.

Good point actually so I'll take that on board. Although it is my opinion it's also backed up by a majority of feedback on where when accountants are discussed. Even though it appears to be the general consensus you are right, it's still not the one true answer. I shall indeed attempt to tailor my feedback..... but with this one I think a contractor specialist over a local guy is key. He's been stuffed by the 24 month rule and I'd be happy to wager that contractor people are much better informed of this rule than most.. but I digress. Good feedback.

[Dactylion]

And this isn't really the best method. It's unlikely you will find someone local that knows contractors. Some will say they do but they won't truly. They will apply the same rules to us as they do other businesses which isn't the best method. You need a Freeagent Accountant. Freeagent is an online accounting portal which is very good. Simple to use and clear. You also then have accountant at the other end of the phone to keep an eye on your FA and for advice and the like. It doesn't matter where they are. Many of us have never met our accountants in many years of contracting.
There are also a number of us that have been screwed over by local guys and haven't had a problem with the remote specialists.

I wish you'd stop spouting this tulip!

or at the very least couch it with "in my opinion".....

Many, many contractors use local accountants and are very satisfied with the service provided and are confident that the local accountant that they use has the requisite experience and knowledge.
Many, many contractors don't use online accountants for a variety of reasons - one of which being that they consider the face to face personal services of an accountant they "know" is better then the faceless box ticking of an office drone where all contractors are treated "the same" (I am NOT a number I am a free man!!).
My accounting needs are different from yours and I feel that they are best met by my local accountant.

Your opinion may differ and I am perfectly happy for you to make that decision for your company but it is your decision for your circumstances and not a blanket right/wrong for everyone.

[northernladuk]

Aye it was just ridiculous, but we all have to start somewhere,

But you say you are couple of months in... and year end is coming up so a key time.

being driven into becoming a ltd co by employers who want to cut their cost, then expecting you to work all hours (which is good financially but bad when you want to make an appointment with an accountant)

Now it's starting to unravel. This is a nightmare situation for someone that doesn't know what they are doing. In one line it sounds like you've just changed remuneration methods so are slap bang inside IR35 so hope you are accounting for that. You are a disguised permie and NOT a contractor.

An accountant is imperative I agree and one will be engaged in due course, not keen on an online co. so want a one local who is recommended by people in my situation.
In future Northernladuk I shall think twice before posting although I did ask for a yes or no answer which some folk happily replied.

Sorry you want to think twice but it's a big bad world. Some straight feedback isn't exactly the worst thing in the world. It's also an internet forum. Just take it with a pinch of salt...

And by the way things have changed...

If you are with your ex-employer and you've been at that location for over 2 years the NO!!!! You cannot claim mileage .The 24 month rule applies. Funny how simple things can change with the right information isn't it.

so want a one local who is recommended by people in my situation.

And this isn't really the best method. It's unlikely you will find someone local that knows contractors. Some will say they do but they won't truly. They will apply the same rules to us as they do other businesses which isn't the best method. You need a Freeagent Accountant. Freeagent is an online accounting portal which is very good. Simple to use and clear. You also then have accountant at the other end of the phone to keep an eye on your FA and for advice and the like. It doesn't matter where they are. Many of us have never met our accountants in many years of contracting.
There are also a number of us that have been screwed over by local guys and haven't had a problem with the remote specialists.

[The Spartan]

Aye it was just ridiculous, but we all have to start somewhere, being driven into becoming a ltd co by employers who want to cut their cost, then expecting you to work all hours (which is good financially but bad when you want to make an appointment with an accountant)
An accountant is imperative I agree and one will be engaged in due course, not keen on an online co. so want a one local who is recommended by people in my situation.
In future Northernladuk I shall think twice before posting although I did ask for a yes or no answer which some folk happily replied.

Which is why starting with an accountant who knows what they're doing is quite important, if you've not managed to employ accountant what does that say about your knowledge of IR35 and contracting in general? If you're not careful you could be in for a whole world of pain.

[homersthirdnipple]

We are sorry you had to ask as well. If you can't answer this why haven't you engaged an accountant. Just ridiculous.

Aye it was just ridiculous, but we all have to start somewhere, being driven into becoming a ltd co by employers who want to cut their cost, then expecting you to work all hours (which is good financially but bad when you want to make an appointment with an accountant)
An accountant is imperative I agree and one will be engaged in due course, not keen on an online co. so want a one local who is recommended by people in my situation.
In future Northernladuk I shall think twice before posting although I did ask for a yes or no answer which some folk happily replied.

[northernladuk]

Thanks for the ''yes'' answers, and yes there are things I might not know Oracle Slave.

So employ the services of someone that does then.

[northernladuk]

We are sorry you had to ask as well. If you can't answer this why haven't you engaged an accountant. Just ridiculous.

[homersthirdnipple]

Thanks for the ''yes'' answers, and yes there are things I might not know Oracle Slave.

[fidot]

Yes, provided that
a) you don't fall foul of the 24 month rule
b) you lower the 45p when you reach 10,000 miles for the tax year

You should also create an expense claim form for YourCo to keep.

[Scruff]

Yes

[oracleslave]

Sorry to ask but having searched all the posts on here I still am a bit confused.
New Ltd company, been running a couple of months, yet to appoint an accountant but will do soon.
Just a yes or no answer to my question please.

I travel weekly to a contact and log 525 miles per week and use my own car.
525 x 0.45p = £236.25
Can I withdraw this from my business account and pay into my personal account with no consequences.

Thanks

That's the root cause of your problem. This question makes me wonder what else you don't know and are potentially doing wrong that will have "consequences". Get an accountant asap.