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Mileage Claims

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    Mileage Claims

    Hi,

    I've just started my first contracting job and it involves a lot of travel to different sites. The client has stayed that I will only be able to claim miles over and above what it would normally take me to get to their main office. The main office is 40 miles from my home, so if I was visiting a site 35 miles in the opposite direction I would be able to claim nothing! Is this right, or do they not actually have to pay me anything and it's just subject to out agreement?

    I assume that where the client doesn't reimburse you for mileage you can claim this as a pre-tex expense through your own company anyway.

    Also if they do pay me some mileage (for long trips) do I also claim all of this trip again against my own company, or just the unpaid bit?

    Thanks!

    Ben

    #2
    <checks this is general>

    Originally posted by benben5555 View Post
    Hi,

    I've just started my first contracting job
    well done, although what took you so long, you've been registered since 2012

    Originally posted by benben5555 View Post
    and it involves a lot of travel to different sites. The client has stayed that I will only be able to claim miles over and above what it would normally take me to get to their main office.
    Ok, sounds fair, they won't pay you for what you would have incurred anyway


    Originally posted by benben5555 View Post


    The main office is 40 miles from my home, so if I was visiting a site 35 miles in the opposite direction I would be able to claim nothing! Is this right,
    Based on above yes

    Originally posted by benben5555 View Post
    or do they not actually have to pay me anything and it's just subject to out agreement?
    They don't have to do squat, you are not a permie so they can't make you go to other sites

    Originally posted by benben5555 View Post

    I assume that where the client doesn't reimburse you for mileage you can claim this as a pre-tex expense through your own company anyway.
    What does your accountant say?

    Originally posted by benben5555 View Post

    Also if they do pay me some mileage (for long trips) do I also claim all of this trip again against my own company, or just the unpaid bit?
    You can't claim for a trip you don't make, you can't claim for the same trip twice

    Originally posted by benben5555 View Post


    Thanks!

    Ben
    You are welcome
    Last edited by SimonMac; 9 March 2016, 15:21.
    Originally posted by Stevie Wonder Boy
    I can't see any way to do it can you please advise?

    I want my account deleted and all of my information removed, I want to invoke my right to be forgotten.

    Comment


      #3
      Time to start talking to your accountant and bit more.
      'CUK forum personality of 2011 - Winner - Yes really!!!!

      Comment


        #4
        Whatever is your agreement with the client..

        Comment


          #5
          Originally posted by benben5555 View Post
          Hi,

          I've just started my first contracting job and it involves a lot of travel to different sites. The client has stayed that I will only be able to claim miles over and above what it would normally take me to get to their main office. The main office is 40 miles from my home, so if I was visiting a site 35 miles in the opposite direction I would be able to claim nothing! Is this right, or do they not actually have to pay me anything and it's just subject to out agreement?

          I assume that where the client doesn't reimburse you for mileage you can claim this as a pre-tex expense through your own company anyway.

          Also if they do pay me some mileage (for long trips) do I also claim all of this trip again against my own company, or just the unpaid bit?

          Thanks!

          Ben
          Any journey from their office to another site you claim £0.45 per mile + VAT. Simple :-)

          Comment


            #6
            Originally posted by benben5555 View Post
            Hi,

            I've just started my first contracting job and it involves a lot of travel to different sites. The client has stayed that I will only be able to claim miles over and above what it would normally take me to get to their main office. The main office is 40 miles from my home, so if I was visiting a site 35 miles in the opposite direction I would be able to claim nothing! Is this right, or do they not actually have to pay me anything and it's just subject to out agreement?

            I assume that where the client doesn't reimburse you for mileage you can claim this as a pre-tex expense through your own company anyway.

            Also if they do pay me some mileage (for long trips) do I also claim all of this trip again against my own company, or just the unpaid bit?

            Thanks!

            Ben
            Before the usual suspect arrive with the napalm...

            Are client co paying mileage on top of your day rate? If so, you play by their rules and it gets added to your invoice each month. Nothing gets paid directly to you unless you want to be treated as an employee with everything that entails.

            When claiming mileage back under normal circumstances your co. can pay you up to 45p per mile for the first 10,000 miles in a 12 month period and 25p per mile thereafter without any tax implications. Anything over that rate gets taxed as income.

            <does the 100 yard nonchalant dash away from the OP>
            "Being nice costs nothing and sometimes gets you extra bacon" - Pondlife.

            Comment


              #7
              WHS. YourCo's agreement with ClientCo is a B2B relationship. You add whatever has been agreed to your invoice.

              YourCo can reimburse you for mileage incurred - this is entirely separate to the B2B agreement above.

              Comment


                #8
                Originally posted by Gumbo Robot View Post
                Any journey from their office to another site you claim £0.45 per mile + VAT. Simple :-)
                Did your accountant tell you that?

                What you personally claim from YourCo and what YourCo charges the client are two separate things. The former is 45p per mile (not plus VAT) and includes everything including going to their normal site; the latter is whatever you agree with them, could be a £1,000 per mile or could be zero (but is +VAT). Even if they pay YourCo £1000 per mile you still only pay yourself 45p per mile otherwise it'll be counted as income and taxed.

                A bit brave to ask this in General.
                Will work inside IR35. Or for food.

                Comment


                  #9
                  If your drive is commuting you put it through your Ltd as an expense.

                  If your drive is for the client you put the cost on your invoice to them.

                  so in your situation whichever client site you go to the first 40 miles will go through your Ltd as an expense for commuting anything above the 40 miles will go to the client on your invoice

                  If you do 35 its only commuting if you then leave that site and go to another client site you bill the client as your no longer commuting
                  Last edited by Support Monkey; 9 March 2016, 15:34.

                  Comment


                    #10
                    Ignore most of the replies so far :-) They are either flippant because you have posted in general or just plain wrong.

                    There is a big difference between what your company can get from the Client Co in terms of these costs.
                    it would on the face of it seem like they are happy for YourCo to charge them for any additional mileage you need to do that is over and above what you would normally do to get to normal ClientCo site.
                    So in your example if you travel 35 mile from your home to Site 2 and normally travel 40 miles to Site 1 they wouldn't expect to pay extra
                    But there are all sorts of variants that might come in to play here:
                    a) If you travelled to Site 1 in the morning and then
                    b) Had to travel to site 2 during the day - They might be perfectly happy to pay YoutCo for 75 miles
                    c) If you then, during the same day returned to Site 1 they might even be happy to pay YourCo for those 75 miles
                    d) BUT if you went straight home they might not expect to pay YourCo for the 35miles....

                    ClientCo will have a rate per mile that they will pay... which may or may not be 45p p/m

                    There is another can of worms about how YourCo gets it's hands on the money
                    a) Does it Invoice for the mileage - AND include addition VAT...
                    b) Do you (on YourCo behalf) enter it into some form of expenses application (and almost certainly NOT include VAT!!!)

                    But entirely independently of any of the above, and irrespective of if ClientCo ever pay YourCo for any mileage.
                    You (as a person) can claim your own mileage from YourCo* including the 40 mile to ClientCo site 1, the 70 miles to site 2, back to Site 1 or back to home or whatever.
                    a) at 45p p/m (upto 10000miles) - without any issues with BIK or tax etc

                    * Assuming that your normal place of work is your registered office/your house
                    as you CANNOT legitimately claim for commuting (travel to your normal place of work)

                    Edit: Some replies written while I was writing are more accurate and helpful than indicated above

                    Comment

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