Few expense based questions if you dont mind :)

[SparkyJoe]

Hello, I have a few questions if you dont mind

When working away from home, as a subcontractor, my invoice looks (Something) like this:

Labour @ £160 Per day x 5 = £800 - CIS @ 20%
Take Home = £640

Expenses: Diesel @ £63.54
Lodge @ £35 x 4
Total: £203.54


So im coming to do my tax return, And i have a few questions:

1. I normally claim 45p per mile, by recording all the miles i do on a spreadsheet, with reasons etc (and backed up with receipts on a fuel card) - Im assuming because i've already been paid the diesel i simply have to deduct the cash paid for the fuel from the millage total?

2. The accommodation payments where always flat rate, at £35, But i haven't got the majority of the receipts, (Daft, and wont happen again) and some hotels cost more / less. If i can't prove the actual cost of the hotel, Am i liable to pay tax on this income (As it hasn't been deducted via CIS) or is it just a given allowance from HMRC when working away?

Thanks for your help

 

[David Griffiths]

Your gross income is £1003.54 and that is what goes on your tax return. You can then deduct mileage at 45p per mile, and your actual accommodation expenses. You'd only have a problem with this if HMRC decided to look at your return. Your mileage records and the charge to the contractor will go some way to supporting a claim for accommodation, even if they can't prove the exact amount

Your main contractor is not deducting the correct amount of CIS tax, by the way. It should be 20% of the £1003.54,not of the £800.00. Not your problem but you need to be aware of it in case he finds out.

 

[Fred_the_frog]

1. I normally claim 45p per mile, by recording all the miles i do on a spreadsheet, with reasons etc (and backed up with receipts on a fuel card) - Im assuming because i've already been paid the diesel i simply have to deduct the cash paid for the fuel from the millage total?

You forget about your fuel costs and include just 45p x miles. So all you need to do is take the total of your miles multiplied by 45p and include that figure- nothing else relating to fuel or motor costs. Remember if you travel over 10k miles the rate is reduced to 25p

 

[SparkyJoe]

I'm aware of 45p a mile etc, I just wanted to know where i stand in relation to already having been paid the fuel, But i guess i should just treat it all as income and just take off the 45p etc and the hotel costs ive got receipts for. Its annoying as the tax should of been taken at source (CIS) and now my rebait is going to be pants ;(