self emp travel exp

JmannJmann Feels At HomeRegistered Posts: 68
Reading various BIM pages on HMRC on website, I am confused even more.

A self employed who is work from home (website developer and support) has a contract to do create an application similar to CRM. Some times she visits client premises and sometimes work from home.

She buys bus pass or travel card to travel to client (as it is cheaper option).

Can she claime this travel expenses as a allowable expenses?

Thanks in anticipaiton

John

Comments

  • maplesarahmaplesarah Just Joined Registered Posts: 4
    If he travels regularly to his client, that would be deemed as a regular place of work, so would not be allowable. If he travels to the client infrequently, irregularly and on rare occasions, he would be classed as an itinerant worker and the travel costs are allowable. However, your client must declare any private use of the travel pass and this should be treated as disallowable.

    Hope this helps!
  • deanshepherddeanshepherd Font Of All Knowledge Registered Posts: 1,809
    I would suggest any travel to and from the client is business travel, providing the business is located at home.

    An itinerant worker is one who has no fixed work location i.e. travels from place to place.
  • maplesarahmaplesarah Just Joined Registered Posts: 4
    Itinerant

    Hello Dean

    Yes, that was my understanding until I attended the Tax Refresher run by Tim Palmer. It was explained that this is a particular niggle with HMRC at the moment and they are currently targeting accountants and other professionals in particular on the point.

    Tim clearly explained the situation and particular reference was made to the point that if you have a regular, established itinerary and travel to the same places, these will be deemed places of work by HMRC and therefore travel is classed as private.

    I agree that in the case John highlighted, it is probable that it is business travel. However, if John's client goes to the same place once a week, for example, at the same time, that would be classed as private mileage.

    Not great news, but true I'm afraid.
  • slackdaslackda Trusted Regular Registered Posts: 460
    maplesarah wrote: »
    . However, if John's client goes to the same place once a week, for example, at the same time, that would be classed as private mileage.

    Problem with that is for example a service engineer working for a A/c company for example, that once a week performs a/c maintenace at a site as part of the contract with the a/c company would that infer that that is his place of work?
    but i think easy case for business mileage
    tough ground really.
  • burgburg Experienced Mentor GloucesterModerator, FMAAT, AAT Licensed Accountant Posts: 1,440
    I'm with Dean on this one. I would be classing it as business mileage and would be prepared to argue this with HMRC if questioned.
    Regards,

    Burg
  • deanshepherddeanshepherd Font Of All Knowledge Registered Posts: 1,809
    There are a lot of things that are a 'particular niggle with HMRC' unfortunately the legislation, and case law, doesn't always back up their opinion.

    Each case has to be viewed on its merits.
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