Consultant Expenses

Laura8192 Registered Posts: 95 ? ? ?
I have a client who is a self employed consultant, her clients cover all her expenses, including 45p per mile for petrol.

Her car is mainly used for business use, so she would be better off apportioning her petrol, tax and other associated costs between business and personal.

Would you just show the payments received for mileage as income, and claim for the apportioned car costs?

I guess what I am asking is does she need to claim 45p a mile just because thats how she charges her clients?

My head says she can still claim apportioned costs but I just need a sense check!



  • MarieNoelle
    MarieNoelle Moderator, MAAT, AAT Licensed Accountant Posts: 1,369
    Hi Laura,
    what the client is willing to reimburse may have no relation to actual costs. The client may agree to pay 20 p a mile or £20 per day as expense allowance, and this is considered as income on top of the consultancy fees.

    Now the actual costs for travel or subsistence need to be accounted for as expenses - 45 p a mile or a proportion of real costs for car expenses if it works out better for your client.

    I hope it helps,
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