New contract and car mileage

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Nixon Williams replied

20 November 2006, 14:05
Originally posted by DeadKenny

Which box? If you don't mind me asking (I'm new to this and haven't done any PAYE returns yet).

Box 6 on the P35 (Annual PAYE Return) that is due to the Revenue each year by 19th May.

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.

Alan
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Sockpuppet replied

20 November 2006, 14:05
Originally posted by VectraMan

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.

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.
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Sockpuppet replied

20 November 2006, 14:04
Originally posted by DeadKenny

Which box? If you don't mind me asking (I'm new to this and haven't done any PAYE returns yet).

Its also called "should have asked my accountant box"
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DeadKenny replied

20 November 2006, 13:30
Originally posted by pickle

ticking the stupid box on your annual PAYE returns puts you under IR35, nothing else. 'Tis but a state of mind.

Which box? If you don't mind me asking (I'm new to this and haven't done any PAYE returns yet).
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VectraMan replied

15 November 2006, 14:35
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.
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pickle replied

15 November 2006, 14:31
ticking the stupid box on your annual PAYE returns puts you under IR35, nothing else. 'Tis but a state of mind.
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Paddy replied

15 November 2006, 14:19
Originally posted by Mordac

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.

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.
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Mordac replied

15 November 2006, 14:15
Originally posted by decode

Is accepting a mileage allowance from a client IR35 friendly?

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.
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decode started a topic New contract and car mileage

15 November 2006, 14:13
New contract and car mileage

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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