Mileage Allowance

[OverCoder]

I contract for a client through my limited company and travel to and from my home (business address) and client site. I claim the standard (45p per mile) travelling allowance for the mileage covered and it is only for business (no personal stops or diversions).
After receiving an email from my accountant detailing that I should no longer claim mileage costs as HMRC won a case against a doctor (did a search for 'doctors mileage case' in google) HMRC vs Samadian, I am in two minds.
What do you see as the percieved risks in continuing (all other conditions - 24 months, business class insurance, etc. are met) to claim?
Has my accountant got a point? And can I be grouped in with Dr Samadian and liable to be a valid target?

[ContrataxLtd]

I contract for a client through my limited company and travel to and from my home (business address) and client site. I claim the standard (45p per mile) travelling allowance for the mileage covered and it is only for business (no personal stops or diversions).
After receiving an email from my accountant detailing that I should no longer claim mileage costs as HMRC won a case against a doctor (did a search for 'doctors mileage case' in google) HMRC vs Samadian, I am in two minds.
What do you see as the percieved risks in continuing (all other conditions - 24 months, business class insurance, etc. are met) to claim?
Has my accountant got a point? And can I be grouped in with Dr Samadian and liable to be a valid target?

Hi OverCoder

Personally I think your accountant is being very cautious as the Samadian case does not apply to employees, just the self employed (sole traders, partnerships etc.).

Have a read of the following article from CUK and see what you think then:

Contractor mileage expenses: the end isn't nigh :: Contractor UK

You might want to question your accountant on this, based on what you have said I think his/her advice is quite misleading.

Hope this helps

Martin
Contratax Ltd

[Forbes Young]

I contract for a client through my limited company and travel to and from my home (business address) and client site. I claim the standard (45p per mile) travelling allowance for the mileage covered and it is only for business (no personal stops or diversions).
After receiving an email from my accountant detailing that I should no longer claim mileage costs as HMRC won a case against a doctor (did a search for 'doctors mileage case' in google) HMRC vs Samadian, I am in two minds.
What do you see as the percieved risks in continuing (all other conditions - 24 months, business class insurance, etc. are met) to claim?
Has my accountant got a point? And can I be grouped in with Dr Samadian and liable to be a valid target?

If you are an independent contractor operating through your own company then you can still claim the 45p per mile for business travel (up to 10,000 per tax year - 25p per mile thereafter).
As I understand it, this case against the doctor was based on his employment responsibilities and work locations relating to his employment (which were separate to his independent self-employment contracts).

[OverCoder]

Hi OverCoder

Personally I think your accountant is being very cautious as the Samadian case does not apply to employees, just the self employed (sole traders, partnerships etc.).

Have a read of the following article from CUK and see what you think then:

Contractor mileage expenses: the end isn't nigh :: Contractor UK

You might want to question your accountant on this, based on what you have said I think his/her advice is quite misleading.

Hope this helps

Martin
Contratax Ltd

Thank you,
The link helped, and I have forwarded it to my accountant.
As with all these things, common sense and being right have nothing to do with the rationale being applied!

[ContrataxLtd]

Thank you,
The link helped, and I have forwarded it to my accountant.
As with all these things, common sense and being right have nothing to do with the rationale being applied!

Glad to help OverCoder, let me know if you have any more issues with this.

Martin
Contratax Ltd