“If you’re an employee and your employer *doesn’t* reimburse you for that travel then... get a new job.”
@QualifiedClean
3 жыл бұрын
Aaww HMRC, why so confusing!! I work a service where I go to my customers homes, these are customers I have for years. I could visit a customer daily, another once or twice a week, and some I see fortnightly. I never start each day with the same customer, so they can't be called my 'Regular Place of Work', but then I may go home after finishing there, or I may go to another customer. I can see how bouncing between customers is claimable, but going to a customer then going home is a bit more of a grey area. 😖 I can see this system needs revamping to account for the new ways in which we now work. Thankyou for the helpful video. In true HMRC style, one question answered leads to 10 new unanswered ones 😊
@AccountingTeaBreak
3 жыл бұрын
That's definitely how I feel!
@knowyourbusiness101
2 жыл бұрын
Because IR35 the agency I worked with transfers everyone to an Umbrella company. However, I am still paying the same travel expenses into London two days a week, working mainly from two different locations three miles apart. I can work from one location one day then another the next day. I can also work from other locations. In short, my work assignments are assigned by the agency to work with Company A, B, or C. But I'm paid through the Umbrella company for which I am technically an employee on a zero-hour contract. Your thoughts would be welcomed.
@JuicySpud
3 жыл бұрын
Great couple of videos. One thing I was hoping you would answer was around round trips. Hypothetical business journey over a single day... Leg 1 - Home (Main place of work) to Stock Collection Leg 2 - Stock Collection to Client 1 Leg 3 - Client 1 to Client 2 Leg 4 - Client 2 to Client 3. Leg 5 - Client 3 to Home. Would someone be able to claim milage for all legs of the journey, or would some of this be excluded? Thanks.
@AccountingTeaBreak
3 жыл бұрын
Thanks! I think the only part I'd question would be Leg 1. If Stock Collection is always (or usually) the same place and you do it every day then maybe that bit isn't claimable? I know you won't spend 40% of your time picking up the stock so you only go there for a few minutes maybe, but my gut tells me that that part would look too much like a regular daily commute. Imagine an estate agent who goes into the office every morning and then spends all day out doing viewings: that first drive to the office feels like a commute even if he then spends only half an hour each morning at his desk. But going on gut instinct is very accountant-y, so if your Leg 1 journey is long and will save you a lot of tax in the year if you can claim it then I would be as literal as possible with their rules and see if you can claim it based on exactly how they define the main place of work/40% thing. It might come down to whether you spend longer at home working or stock collection. If it's an hour or two of home work a day and 30 minutes at stock collection then it feels more like you can claim the whole lot. Good luck!
@lsbr5124
4 жыл бұрын
Unbelievably based video, agree 100% with everything you said. We are ripped off when getting taxed 40%, we are ripped off with national insurance (which is a tax as you correctly pointed out). Then after the government takes half your income in taxes, it adds a further 20% tax (VAT) on all your purchases. THEN to add further insult to injury, the taxman tells you to get fooked when you try to deduct your cramped tube journey to work. GTFO hmrc with that BS logic.
@AccountingTeaBreak
4 жыл бұрын
That comment has cheered my Monday morning! I love to see a bit of fire in the belly, makes me think I'm not the only one! :-D
@kimwhite2167
2 жыл бұрын
Thank you so much!! 🤩👍🏻
@FuzeDzn
3 жыл бұрын
I'm in a proper weird situation (or at least feels like it). took on self employment as a sales rep for a company (freelance). They pay me for all of my expenses including mileage. I visit different stores on a list/schedule each month starting from home, to the store and back again. 20/21 the most I spent in a single store was 26% of my working days. 31% was working from home thanks to Lockdown 2 & 3. So from what I gather, I need to list the mileage rate I got from the client as Income, then claim that back as expenses and that is all fine yes? First contract was for 8 months, hoping to sign another contract in next few days with them for 12 months. I will be doing the same thing again going to these stores (even more), but on the current list, 53% of my work time/travel will be to 1 store specifically. If I understand your video right, I can still claim this back despite being so high as I have only signed a 1 year contract (reviewed each year, technically quaterly actually), and in total will have only been working for them for 1 year, 8 months correct? Do you offer a service where I can chat to you and get information/help like this? I think submitting my self assessment myself should be fine, I just need the advise on where I stand
@AccountingTeaBreak
3 жыл бұрын
It *sounds* to me like you've got a good understanding of the situation. The mileage rate you get from the client: if it's higher than the government rate then treat the bit above 45p (or 25p) as income and ignore the rest, and if it's lower than the government rate then claim for the extra in your self assessment. (That should work out the same as what you said: claiming the full government rate and treating all of the client mileage rate as income. Your way would slightly increase your income and expenses and leave the profit the same as my way, so just make sure that your turnover isn't reaching some important threshold like the VAT threshold that you might want to avoid.) And your contract length numbers sound right to me too. Sorry to say I don't have any service like that right now: any spare time I have away from current clients I'm pouring into setting up a patreon service that can give more integrated, educational videos and posts for running a business. I'll see about making quick phone consultations a little add on you can purchase so people who are 95% ready to do their own forms can get help with the last 5%. Thanks!
@FuzeDzn
3 жыл бұрын
@@AccountingTeaBreak thank you so much for the reply!! So if I understand what you're saying right, I could technically leave the expenses money from the client out of my self assessment completely as long as it's not above the standard rates? 21/22 is looking like upto 32k miles of driving so will definitely be going down to 25p. Would that only be for the mileage, or also things like paying back flights, hotels etc (I have assumed that needs to be declared as income and claimed back so far). Ahh yes totally understand, it's such a headache when it's the first one you've ever done so whilst I feel the process of actually filling it in looks fine, it's those little details and bits of info to make sure it's all legal is where the help comes in massively 👍 Thank you for your time so far to reply to me here though, Matt
@AccountingTeaBreak
3 жыл бұрын
@@FuzeDzn Hmmm... I suppose this is getting into the technical weeds. Since you've got clients, rather than an employer, I suppose it's a bit different whether we count it all as income and then expense all of the mileage or just do the difference. It's the difference between a client who pays you extra to cover your costs, and a client who actually takes receipts for flights and hotels and pays you exactly for them. Sounds like the latter for you, which probably makes those payments "recharges". Looking now, HMRC seems to say travel expenses can't be "disbursements" which sounds a bit arbitrary to me. Anyway, not that you need to know, but if these are "recharges" then you include everything you charge your client (including mileage and hotels and so on) as income and include all the mileage allowance and hotel costs as expenses too. Sorry if that contradicts the previous post, but I went down a bit of a rabbit hole on the disbursements/recharges/expenses thing and it got messy. Like I say, it shouldn't actually affect you 9 times out of 10 which method you use.
@FuzeDzn
3 жыл бұрын
@@AccountingTeaBreak Wow yeah ok thats getting a bit into it. I just searched for Disbursements and Recharges (never knew there was a difference and these terms were a thing). The client doesn't actually take any of the receipts from me. At the start of each month I have been planning my route and any costs involved (flights, hotels, parking, mileage), book everything and then at the end of the month I send them 2 invoices. One which has all the expenses (At the full cost to me, but I don't add on any VAT/20% charge(maybe something I should try negotiate??)) and then another with the work rate so eg: Store Demo Day x 18 @ £120 per day. They then pay both of them to me in 1 payment with a receipt for both invoices on it to confirm. But they never ask for the receipts for the hotels or anything. As it happens HMRC had said to me last year that none of it needed to be declared as they were just paying for my costs, but I think from what you've said there, and what I had read so far online and such, It's probably safer to declare everything and claim back it all so it offsets the income even though the outcome is the same. Could be a tricky one to explain if they did an audit and I had an extra £10k in the bank that they never knew about. Just got to hope they don't throw up any issues around the amount of mileage I'm doing .
@viperfrank
2 жыл бұрын
Thanks mate your videos are great 👍. Sorry if this is a question you get all the time. If for example I'm a self employed electrician. If I go and do a job I can claim for the milage to drive to that pirsons house to do the job and the journey back home or is it just to the job? I don't have a office building or a depot. I just run my business from my house. Thanks
@languagestutor4636
2 жыл бұрын
Hi, great video, thanks! I have a question , please: when you talk about 40% rule, do you mean for the tax year or a week? Many thanks!!
@rogerdavis8602
2 жыл бұрын
Grat videos. How do you claim mileage if you work for an umbrella company. I am now deemed inside IR35 so have to do this.
@AccountingTeaBreak
2 жыл бұрын
I think if you're inside IR35 then you act just like an employee for this: you're claiming by telling HMRC on your Self Assessment that you have some extra expenses related to your job and you'd like to pay a little less tax than you've paid through PAYE. Good luck!
@jasonvrodrigues
2 жыл бұрын
Thank you. Do you have any advice for agency workers, working at multiple locations or split between 2 locations.
@BobbyKewley
2 жыл бұрын
So, Have I got this right...? If I expect to work at a particular site for only a year, does the 40% rule then not apply? To explain my situation, I'm currently working freelance on a site four days a week but I'm expecting this to finish in December (I started there last December) I'm going to be doing my 2021-2022 tax return soon and need to know if I can claim the travel...
@ollynich4351
2 жыл бұрын
Hi I have a question, I recently completed a 9 month contract with a recruitment agency working in a warehouse. Since this is temporary work would I be able to claim back my miles for driving to and from the warehouse over the course of the 9 months? Cheers
@sajulldin5147
3 жыл бұрын
Great video, the only query I have, my wife works part time as a Care Support Worker, visiting Clients in their own homes, and can be 10-15 different houses per shift. As she is part time, she earns less then her personal allowance. How would the mileage relief work? Does she then get a payment?
@AccountingTeaBreak
3 жыл бұрын
Thanks Saj. I'm afraid she won't get anything useful out of mileage relief, no. (Well, not that I know of, I suppose there could be benefits that are conditional on how much you earn, and those could go up if her effective earnings go down by claiming her mileage allowance. I'm not the expert on that though.) For example, if you earn £10,000 a year and spend £2,000 on allowable travel, then you can reduce your earnings for income tax to £8,000 a year instead of £10,000. But as you know, that's all within the personal allowance, so the income tax bill is zero either way. As an employee, it's that income tax bill we're trying to reduce with travel claims, so I can't see anything useful to do in your wife's case. Sorry to be the bearer of bad news!
@sajulldin5147
3 жыл бұрын
@@AccountingTeaBreak i thought this would be the case, but didn't want to assume. Its quite bad the employer refuses to pay any travel expenses when its visiting clients in their own homes. Thanks for the quick reply, appreciate it
@ykbwhd
3 жыл бұрын
Can I claim mileage and travel expenses if i work for an agency as self employed, and I’m required to work in different locations within 24 months, allocated by the agency?
@AccountingTeaBreak
3 жыл бұрын
Yes, for lots of the travel but maybe not all of it. It might be that one of your places meets the 40% rule (3:42) and counts as your normal place of work so you can't claim for travelling there but can claim for travelling to the other sites. But also watch out for the site-based rule (5:54): if you go to different locations that are all quite close to each other then HMRC thinks of it as one "site". Thanks!
@ykbwhd
3 жыл бұрын
@@AccountingTeaBreak Thank you for your guidance! Does mileage expense cover from the main site to the other sites, or does it also involve from home to other sites?
@AccountingTeaBreak
3 жыл бұрын
@@ykbwhd It should cover both: either home to a temporary place of work, or main workplace to a temporary place of work, both are fine to claim.
@ykbwhd
3 жыл бұрын
@@AccountingTeaBreak you’re an absolute legend, thank you!!
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