Mileage Allowance

[Kev1]

Hiya,

Looking for assistance regarding mileage allowance. I have looked for answers all over the HMRC but don't see anything that covers this question. If a director of a limited company is contracted to another company to carry out consultancy work for a period of 6 months at the same destination every day using his own car, hope this makes sense! Can he claim mileage from his place of business (based at home) to that destination to and from every day?

 

[Billmccallum]

Depends on your contract with your customer.

In a normal working environment, an employer would not pay for your travel to work, but in a consultancy role it is normal for travel costs to be covered.

I normally charge 40p a mile, or the total cost of the journey and give the petrol station reciept for the fuel so the client has the evidence of cost.

 

[Kev1]

Hi Bill,

It is not written into his contract. He wants to claim it through his business as a mileage expense. I thought I read somewhere that if you are are there more than 60% of the time HMRC won' t allow it. Just to get this clarified.

Thanks

 

[Tom Egerton]

If he usually works from home, this will be his place of business. There has been a raft of case law recently where HMRC have challenged this concept in order to disallow travel costs to where the work is sometimes carried out - they have not been particularly successful.

Provided the contract was not intended to cover a period exceeding 2 years, he will be site-based and able to claim mileage - note that it will now be 45p for the first 10,000 miles.