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Commuting or Business Mileage?

This may be a straightforward qustion for some of you but after looking around on the web I can't seem to find an answer.

My question is this, If say for example a sales person has got a company car, and they travel from home immediately to a customer's property (not an address they'll go to on a regular basis) would the travel be classed as Private or Business Mileage, for the purpose of deductions?

P.S.

Excuse me if this question has been asked before, but I have used the search tool and can't find an answer.  Feel free to direct to another thread if this is the case.

Thanks,

David.

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By MJShone
29th Feb 2012 12:49

Assuming you';re talking about an employee...

...you'll probably find more information than you actually wanted in the Revenue's own Employment Income Manual from EIM3200 onwards: http://www.hmrc.gov.uk/manuals/eimanual/EIM32000.htm

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01st Mar 2012 09:27

EIM32300 Section 338(2) ITEPA 2003

MJShone wrote:

...you'll probably find more information than you actually wanted in the Revenue's own Employment Income Manual from EIM3200 onwards: http://www.hmrc.gov.uk/manuals/eimanual/EIM32000.htm

Thanks for the pointer MJ.

From what I can gather from EIM32300 Section 338(2) ITEPA 2003, if the customer's property is roughly the same distance, and in a similar direction as the office, then the journey would be classed as normal commuting and would be private mileage.

Conversely if the journey takes them away from the direction of the office, or is significantly further than the normal commute (over 10 miles) then the travel would be classed as business mileage.

Another point which could be relevant is Section 339(2) ITEPA 2003. "If the employee performs a significant part of his or her duties from home, then it should be considered a permanent workplace" I am taking from this then that any travel for work purposes from their home should be classed as business mileage.....?

Am I understanding these points correctly?

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01st Mar 2012 10:58

Further investigation...

I've read a bit more in to the EIM32000, more specificaly 32065.

I believe that the situation above is in line with the "Temporary Workplace" guidelines.

The journeys the sales people make are:

A) For a limited duration i.e. one off, 30 minute visits.

B) For a temporary purpose i.e. self contained visits for the purpose of survey/sales

They also satisfy the points made in EIM32190, as they have a permanent workplace in the form of our office, so the geographical area they work in can't be classed as a permanent workplace.

So going back to the question, if the sales person was to travel from home immediately to a customer's property I think it should be classed as business mileage for the purposes of deductions, and I'll be going with that....unless somebody knows otherwise....?

 

Thanks,

 

David

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