Travelling back to home office may be unclaimable...

[TheFaQQer]

In the second part ("The Tribunal also ruled against the doctor regarding mileage between NHS and private hospitals i.e. between his place of employment and the place he carried out his self-employment.")...

• He was working somewhere else as a permanent place of employment.
• He travelled from there to another office (his home) to do some different work for himself.
• He tried to claim that
  the journey between the two was a business expense.

I see nothing wrong in the tribunal ruling, to be honest - his journey from his permanent place of employment to another permanent place of employment wasn't something which was required by either business, so it shouldn't be claimable.

For a contractor, you can have multiple clients and one permanent place of business (home) and claim the travel between them, since they are all expenses for the business.

[LisaContractorUmbrella]

It sounds as though HMR&C viewed the 2 hospitals as his permanent workplaces and travel and subsistence are only allowable to a temporary workplace - this is why umbrella companies have to operate an over-arching contract; if they didn't the contractors' individual assignments would all be viewed as permanent workplaces.

[BolshieBastard]

Just keep claiming it and carry on

[psychocandy]

Hmmm. Surely if HMRC put a stop to this they're gonna screw up the whole idea of people working on client sites that are not their base?

What about the plumber who drives to a customer house to fit a shower? When they leave at night does that mean they can't claim for the 20 miles return journey just because they're going home? Seems to fly in the face of the idea of business travelling....

Cant see how it would ever work...

[SueEllen]

Just sounds messed up to me.

So if I have to fly to an office in Belgium for work I can't claim the return leg as I'm coming home?

I think here (or hope) the problem was.

Home Office -> Temp Work Place -> Non Temp Workplace -> Home Office.

The last bit was the "going home bit".

HMRC treat self-employed people different to those who use other legal structures like limited companies.

In addition if the doctor couldn't show there was a difference in how they worked at home doing NHS work and private work then it would make HMRC's case easier to argue as many permanent employees do extra work and training at home.

In our cases our trading addresses are generally our home addresses and as we don't have an external permanent workplace then we don't need to argue how the nature of our work differs in each place.

[Jessica@WhiteFieldTax]

Just sounds messed up to me.

So if I have to fly to an office in Belgium for work I can't claim the return leg as I'm coming home?

I think here (or hope) the problem was.

Home Office -> Temp Work Place -> Non Temp Workplace -> Home Office.

The last bit was the "going home bit".

Extract from report in Taxation, industry journal, re HMRCs successful case:

There was an attempt to draw a clear distinction between Horton, the labour-only subcontractor working at various temporary sites, and Dr Samadian, the medic habitually delivering his professional expertise at fixed sites.

I think the full article is behind their paywall, but try googling Samadin tax case, or you can get a temporary login to taxation:


http://www.taxation.co.uk/taxation/A...21/way-go-home

[Sockpuppet]

Just sounds messed up to me.

So if I have to fly to an office in Belgium for work I can't claim the return leg as I'm coming home?

I think here (or hope) the problem was.

Home Office -> Temp Work Place -> Non Temp Workplace -> Home Office.

The last bit was the "going home bit".

[Jessica@WhiteFieldTax]

But if that is the case it wouldn't affect them either as they cannot claim mileage to a permanent place of work?

It's travel between places of work. The quoted case boils down to the doctor claiming his home office was a place of work, and the tribunal disagreeing.

[northernladuk]

Most PSC freelancers shouldn't be affected unless they have a permanent office away from home.

But if that is the case it wouldn't affect them either as they cannot claim mileage to a permanent place of work?

[northernladuk]

He has a permanent place of work at one of the hospitals, complete with secretary and his own office. Which rather buggers naming his house as his place of work...

I can't read that in to this. Yes for his NHS work but as a doctor at a private practice is he not freelance? Devil is in the details which we don't have I guess.

[Jessica@WhiteFieldTax]

My feeling is it is of fairly narrow application, and came from a precise set of circumstances and working practices.

Most PSC freelancers shouldn't be affected unless they have a permanent office away from home.

[malvolio]

Anyone else seen this?

Why mileage claims for home-based office users are in doubt :: Contractor UK

It appears a doctor has a home office and travels to two hospitals to do private work but tax tribunal has found his journey to and from these is not valid. They say it is a 'mixed object' so assume what they are saying is that yes we think it is a journey from temp location back to office... but it is also travel home, NOT to the office. So two different types of journey could be considered.

I guess the work around is to make sure you do some work before you leave and some when you get back to make the journey inbetween your working day, not at the beginning and the end...

Doesn't mention the 24 month rule so I would assume this isn't an issue in this case?

Any of our regular accountants seen this and what is their take on it. Flash in a pan or something that could cause a shift in this area?

He has a permanent place of work at one of the hospitals, complete with secretary and his own office. Which rather buggers naming his house as his place of work...

[northernladuk]

Anyone else seen this?

Why mileage claims for home-based office users are in doubt :: Contractor UK

It appears a doctor has a home office and travels to two hospitals to do private work but tax tribunal has found his journey to and from these is not valid. They say it is a 'mixed object' so assume what they are saying is that yes we think it is a journey from temp location back to office... but it is also travel home, NOT to the office. So two different types of journey could be considered.

I guess the work around is to make sure you do some work before you leave and some when you get back to make the journey inbetween your working day, not at the beginning and the end...

Doesn't mention the 24 month rule so I would assume this isn't an issue in this case?

Any of our regular accountants seen this and what is their take on it. Flash in a pan or something that could cause a shift in this area?