Home - Office Mileage Claim?
Discussion
Hi folks,
Currently my company mileage rules inhibit me from claiming the above, and I have to deduct it from a business journey to a customer site.
A work colleague at another business says that he does nothing of the sort, he claims everything.
We both drive privately owned vehicles.
Any clarification would be gratefully received.
Thanks, Greg
PS - both of us are office based, not home.
Currently my company mileage rules inhibit me from claiming the above, and I have to deduct it from a business journey to a customer site.
A work colleague at another business says that he does nothing of the sort, he claims everything.
We both drive privately owned vehicles.
Any clarification would be gratefully received.
Thanks, Greg
PS - both of us are office based, not home.
Its the shortest route I believe.
Lets say for example your office is in Brackley and you work in Brum.
Brackley - Brum = Nope as its a commute.
You have a meeting in Preston
Brackley - Brum = Nope
Brum - Preston = Yep because its mileage you otherwise wouldnt have done.
Now lets say you have a meeting in Daventry
Brackely - Daventry = Nope (oddly) as you would have commuted further anyway...
I think thats the case anyway.
As for Trisha, I always had you down more as a Kilroy man...
Lets say for example your office is in Brackley and you work in Brum.
Brackley - Brum = Nope as its a commute.
You have a meeting in Preston
Brackley - Brum = Nope
Brum - Preston = Yep because its mileage you otherwise wouldnt have done.
Now lets say you have a meeting in Daventry
Brackely - Daventry = Nope (oddly) as you would have commuted further anyway...
I think thats the case anyway.
As for Trisha, I always had you down more as a Kilroy man...
If I was travelling to another office straight from home then I used to claim from home to the office less the mileage of my normal journey. However I then discovered everyone in the office was claiming the whole journey from home as you home was your 'base' for that day. Think the tax man is also happy with this situation as well.
I've always claimed for the whole journey to a customer not subtracting any commute I'd normally have done. No company I've worked for has had an issue with this (Adobe, Dell, Sun to name a few).
Also, our office just relocated from Bracknell to near Fleet meaning 12+ miles extra each way for me. The company are paying mileage for the additional amount for 12 months. Very fair. Pity I have to drive right past the old office and face an extra 20 mins in the car each way ... Still, there's a better canteen and more pretty ladies here.
T/.
Also, our office just relocated from Bracknell to near Fleet meaning 12+ miles extra each way for me. The company are paying mileage for the additional amount for 12 months. Very fair. Pity I have to drive right past the old office and face an extra 20 mins in the car each way ... Still, there's a better canteen and more pretty ladies here.
T/.
Davel said:I am sure that when I used to work for a construction company the Site Managers were considered to work from home so they could claim the mileage to whatever site they were working at the time as this would change every six months or so.
What if you had your own main 'office' at home and then drove regularly to the other office.
On a related theme (not a complete Hijack) can you claim back tax on the extra insurance required for business use (my insurance only covers me from home to permanent office)?
Paul
Edited to say - I've always claimed the whole journey but my boss is very layed back concerning expense claims.
>> Edited by gopher on Tuesday 21st October 14:06
Paul
Edited to say - I've always claimed the whole journey but my boss is very layed back concerning expense claims.
>> Edited by gopher on Tuesday 21st October 14:06
If you are an employee, the test for any expense is whether it is incurred "wholly, exclusively and necessarilly for the purposes of your emp[loyment".
If you are running your own business (sometimes referred to, incorrectly I might add as "Self Employed"), the test is "wholly and exclusively for the purpose of the trade" only.
If you are running your own business (sometimes referred to, incorrectly I might add as "Self Employed"), the test is "wholly and exclusively for the purpose of the trade" only.
GregE240 said:
I don't believe Mr.Turpin allows you to claim for the commute, old bean.
P.S. Wot time's Trisha on?
Thanks DeR. There goes my dream of several years of back tax relief up in smoke.
Who's Trisha? Is this some Boltonian slang for something confectionary related?
Who's from Bolton then - there can't be two of us!
Cheers
D
The term "necessarilly" makes a huge difference.
"Wholly and exclusively" means that the value of the expense being claimed was incurred purely for the purpose of the trade. This means that it is relatively easy for incidental expenditure to be apportioned into "business" and "non-business" elements. As long as the business proprtion was "wholly and exclusively" incurred for the purpose of the trade, it will be allowed.
"Wholly, exclusively and necessarilly" is a much more stringent test. Basically, the taxpayer would not have incurred the expense at all only for the fact that it was forced on him by the nature of his job. That is why it is impossible to claim the expense of purchasing a "work" suit as the tax man will cotend that the suit could and possibly would have been bought whether that taxpayer was working in that particular job. On the other hand, claiming the cost of a bolier suit would almost defintely succeed on the basis that it was necessary for work.
Some of these distinctions can be quite contentious and may need a test case to obtain a ruling.
"Wholly and exclusively" means that the value of the expense being claimed was incurred purely for the purpose of the trade. This means that it is relatively easy for incidental expenditure to be apportioned into "business" and "non-business" elements. As long as the business proprtion was "wholly and exclusively" incurred for the purpose of the trade, it will be allowed.
"Wholly, exclusively and necessarilly" is a much more stringent test. Basically, the taxpayer would not have incurred the expense at all only for the fact that it was forced on him by the nature of his job. That is why it is impossible to claim the expense of purchasing a "work" suit as the tax man will cotend that the suit could and possibly would have been bought whether that taxpayer was working in that particular job. On the other hand, claiming the cost of a bolier suit would almost defintely succeed on the basis that it was necessary for work.
Some of these distinctions can be quite contentious and may need a test case to obtain a ruling.
The tax legislation refers to "Trading" rather than "Self Employment". Anyone who is in business on their own account is a "Trader". Trading Income is taxed under the Income Tax Schedule D Case I or II regulations. Individuals pay Income Tax on their Trading Income. Limited Companies pay Corporation Tax on their Trading Income.
With the advent of Self Assessment in 1996/97, the Inland Revenue started using the looser term "Self Employed" as an alternative to "Trader". In fact, the trading element of the Self Assessment tax return is covered by the "Self Employed Supplementary Pages".
"Wholly and Excliusively" relates to Schedule D earnings.
An individual who is an employee or a director will have his earnings from employment taxed under the Schedule E regulations. Income Tax on earnings under Schedule E is normally collected through the PAYE system. However, there are circumstances when individuals may find themselves paying additional tax under Schedule E through the Self Assessment system.
"Wholly, exclusively and necessarilly" relates to Schedule E income.
With the advent of Self Assessment in 1996/97, the Inland Revenue started using the looser term "Self Employed" as an alternative to "Trader". In fact, the trading element of the Self Assessment tax return is covered by the "Self Employed Supplementary Pages".
"Wholly and Excliusively" relates to Schedule D earnings.
An individual who is an employee or a director will have his earnings from employment taxed under the Schedule E regulations. Income Tax on earnings under Schedule E is normally collected through the PAYE system. However, there are circumstances when individuals may find themselves paying additional tax under Schedule E through the Self Assessment system.
"Wholly, exclusively and necessarilly" relates to Schedule E income.
If you use your own car for business trips - the normal procedure is to claim a mileage allowance from your employer. You will not be taxed on this income provided the mileage claim does not exceed 40p per mile for the first 10,000 business miles and 25p per mile thereafter. You can also claim an additional 5p a mile for every passenger you carry in your car on a business trip. If you claim lesser amounts from your employer than these maximum limits, you can make a separate tax claim for the difference.
If you have a company car you will be taxed on the ownership of the car under the Inland Revenue Benefit in Kind rules. In addition, if your employer pays for any or all of your private petrol, you will be hit for a fixed fuel surcharge. People who have a company car should not be making mileage claims from their employers.
If you have a company car you will be taxed on the ownership of the car under the Inland Revenue Benefit in Kind rules. In addition, if your employer pays for any or all of your private petrol, you will be hit for a fixed fuel surcharge. People who have a company car should not be making mileage claims from their employers.
eric mc said:
People who have a company car should not be making mileage claims from their employers.
....If the employer provides a fuel card.
If they don't provide one it stands to reason that the employee can claim for fuel used on business pre-paid by the employee from their own funds?
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