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hire car expense claiming

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    hire car expense claiming

    I work for a client who occasionally asks me to attend meetings at one of his facilities 125 miles away. Their expense policy is to only permit personal vehicle use for journeys less than 80 miles round-trip and to use a hire car for anything longer. So I hire a car through their arrangement with Avis on my personal credit card and then submit an expense claim to my agency which as been signed by a director within the client's management team. The agency pays my umbrella company the values ex VAT and the umbrella company treats this like my weekly salary so I claim the same expenses to the umbrella company to recover the VAT and tax and NI. This has worked fine 5 or 6 times since my contract started in April.

    However, with my most recent hire car claim they have only paid 5/7s of the hire car and fuel value as they're saying that's all HMRC will allow as it's been less than 45 days since my last car hire. What on earth is this about? Any insight would be appreciated.

    #2
    never heard of this - who is saying client or umbrella?
    This default font is sooooooooooooo boring and so are short usernames

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      #3
      Umbrella - client and agency have no issue with these periodic 1 or 2 day car hire expenses.

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        #4
        Google is a wonderful thing.

        Contractors' Questions: Can I claim car hire costs? :: Contractor UK

        Reasonable car hire charges can be claimed when used solely for business during the working week. So if you are hiring a car for 7 days this is limited to 5/7ths of the cost (due to being able to claim for the working week only) and original receipts must be provided. Remember, you can only use the hire car for business. If you use it to go shopping, pick up the kids from school etc. then you could incur a taxable benefit which would involve a significant tax liability.

        If you claim for car hire the amount you can claim for mileage is reduced to the cost of the fuel only. The amount you can claim depends on the fuel type of the car and engine size, but is typically around 18p per mile.
        I presume they are mixing this up with the car hire for a week but business use only for 5 of the 7 days.
        'CUK forum personality of 2011 - Winner - Yes really!!!!

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          #5
          Or have a dig through this.....

          BIM47750 - Specific deductions: travel & subsistence: Cars - restriction of hiring costs: Leases entered into on or after 1/6 April 2009 - short term hiring in and long term hiring out

          Example - Hire period less than 45 days
          Business B (the taxpayer) hires a car from Business H from 1 June to 10 July for £25 per day. The period of hire is 40 days. The total hire cost is £1,000. Business B meets condition A. The hire period of the car is less than 45 days so there is no restriction on the deduction for hire expenses.

          Allowable deduction is £1,000.
          I can't see anything about the period between hire.
          Last edited by northernladuk; 27 November 2013, 22:27.
          'CUK forum personality of 2011 - Winner - Yes really!!!!

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            #6
            Are you a business or are you an employee?

            Ask yourself that.

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              #7
              Clients don't half have some bloody silly policies.
              'CUK forum personality of 2011 - Winner - Yes really!!!!

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                #8
                Originally posted by stek View Post
                Are you a business or are you an employee?

                Ask yourself that.
                Interesting question in the brolly section
                'CUK forum personality of 2011 - Winner - Yes really!!!!

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                  #9
                  Originally posted by northernladuk View Post
                  Google is a wonderful thing.

                  Contractors' Questions: Can I claim car hire costs? :: Contractor UK



                  I presume they are mixing this up with the car hire for a week but business use only for 5 of the 7 days.
                  Well that would explain the way they have calculated the car rental costs - the fuel should have been based on actual business miles.


                  I had not seen the other bit about the 18p per mile - my accountant didn't tell me about that I will have to dig further!

                  EDIT: Ah found that the 18p per mile is related to allowed mileage on company cars....

                  http://www.hmrc.gov.uk/cars/advisory_fuel_archive.htm
                  Last edited by MPwannadecentincome; 27 November 2013, 23:23. Reason: found link
                  This default font is sooooooooooooo boring and so are short usernames

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                    #10
                    Originally posted by MPwannadecentincome View Post
                    Well that would explain the way they have calculated the car rental costs - the fuel should have been based on actual business miles.
                    It doesn't to me. He hasn't hired it for a week from what I can see and they are saying the 5/7ths are to do with the less than 45 days which is a different rule and incorrect. They seem to have taken business use only, thrown in a soupçon of car hire rules, mixed it in to a mess and then served it cold to the OP. Bit of mess that one... Unless I have missed something which is highly likely. Mistress LisaContractorUmbrella will be along shortly to tell me I need some correction.
                    'CUK forum personality of 2011 - Winner - Yes really!!!!

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