Payment problems.

[Fleegle]

If you are strictly self-employed, you cannot expect any of your clients to pay mileage. Assuming you claim VAT on diesel, and tax relief on fuel expenses, they are clearly under no obligation to subsidise this...you can't have it both ways.

[johnep]

If mileage paid by client and tax paid as though income, then you can claim against tax at 40p/mile.
johnep

[Fleegle]

Surely your client would be claiming locum travel expenses against his own tax liability?

[DavidS]

Originally Posted by Fleegle

Surely your client would be claiming locum travel expenses against his own tax liability?

Just because I claim tax relief at 40p per mile on travel distance, doesn't mean I can't also claim for travel expenses from the company I'm working for.

I just add it to my salary when I send in my tax return, as that's what it amounts to.

I don't know where you get the idea that I "shouldn't expect " travel costs if I'm also claiming 40p per mile agains tax? I have always done so.

Incidentally, the PDA recently opined that its rubbish that companies "cannot" pay the first chunk of mileage for tax reasons. Arthur Daley had it right, it seems, when he said that hitting old ladies over the head and stealing their handbags is robbery, everything else is business.

[Fleegle]

[quote=DavidS;14564]Just because I claim tax relief at 40p per mile on travel distance, doesn't mean I can't also claim for travel expenses from the company I'm working for. QUOTE]

I sincerely hope I'm wrong, but I don't think that two businesses can claim tax relief on what is an identical expense.

[lamzee]

The locum adds it to the invoice as part of his/her fee and the employer writes it down as a payment for services. That's how I've always done it.

eg locum fee = x
mileage fee = y
do invoice for z (= x+y)

employer gives invoice for z to accountant.

[johnep]

Absolutely, all staff costs count against tax for an employer. My acct advised me to pay tax on mileage 20 years ago and claim against my tax. New accts say the same. Point is you do not pay tax twice.
johnep

[Fleegle]

As a locum, I keep one vehicle which is purely for my business use. All expenses, including VAT on fuel, depreciation, finance, insurance, road tax, maintenance, tyres etc. and fuel costs are charged to tax. If I can also gain relief on mileage then I certainly will..I will talk to my accountant! Thanks for the tip lads!

[johnep]

No, rule is that you can claim mileage against tax or running expenses etc based on percentage of time used on business. Generally the milage gives the best deal unless you run a banger with high maintenance costs.
johnep

[Fleegle]

Yes John..that's cleared it up...It works better for me personally not to claim travel expenses..so I go the other way and claim costs..VAT in Ireland is 21%, so that is what I think swings it.

Also, clients quite like the fact I don't charge them any travel costs.