Expenses - car when working abroad.

[chrisl]

I worked in Germany for about a year for a contact i had.
I hired a car which i needed to use for business 100% of the time. My client reimbursed my car and fuel expenses as we agreed this.

Now my accountants are taxing me on the money i am receiving in respect of the car and fuel expenses. I dont believe i should be as it was 100% business use and i had the car for business reasons.

I understand about the company car rules, but this was not a car i used personally or even had the choice in having. It was a requirment for me working whilst i was over there.

Based on the fact it was not actually a benefit to me, should i therefore not be taxed on it?

[Little'Old Me]

I worked in Germany for about a year for a contact i had.
I hired a car which i needed to use for business 100% of the time. My client reimbursed my car and fuel expenses as we agreed this.

Now my accountants are taxing me on the money i am receiving in respect of the car and fuel expenses. I dont believe i should be as it was 100% business use and i had the car for business reasons.

What do you mean by "taxing me on the money" - how are they doing this?

Are you a sole trader or a Ltd Company?

[chrisl]

Sorry, Ltd company.

When i get paid they pay my wage + re-chargeable client expenses. Therefore, corp tax is getting applied to the whole lot.

[blacjac]

Erm, not it isn't....

Simplified sums:

100 worth of work, 2.50 car expenses per month = billing of 102.50 per month.

Taxable profit = 102.50 per month less expenses of 2.50 per month.

So taxable profit = 100 per month

[NotAllThere]

...Now my accountants are taxing me on the money i am receiving in respect of the car and fuel expenses. ...

HMRC are your accountants?

When i get paid they pay my wage + re-chargeable client expenses

So it is a brolly?