Dear All,
One of my client, a Lorry driver, registered his own company and his company having contract with various customers for providing lorry driver services!
He is asking me he can claim ''Subsistence: lorry drivers overnight allowance'' from his company and one of his friend in the same business is claiming it for long!. However, on review of various articles and policy note from HMRC website, it is a bit confusing! I would appreciate some guidance on this from senior faculty members from this site.
This allowance is payable by employers when drivers have to spend the night away from home and their permanent workplace (if any). Where drivers have a sleeper cab 75% of the allowance may be paid.
I have seen HMRC lorry drivers subsistence allowance: EIM66110. but not very clear!
Thank you in advance,
Rj
Replies (13)
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You describe the client as self-employed, but then state he is working through a limited company. Which is it? Are you even sure?
The latest development that I have seen on the subject of lorry driver overnight allowances is as follows:
https://www.cchdaily.co.uk/hmrc-spat-hauliers-over-demands-evidence-over...
Generally the established / industry agreed allowances are for EMPLOYED drivers (not specified or negotiated for self employed drivers from what I have seen in recent years).
A director employed by his own haulage company should qualify for the agreed allowances as that is employment.
It seems he is now a director, therefore employed rather than self-employed. The ITEPA rules apply.
The rules for round sum allowances changed from April 2016 - you can no longer agree a dispensation for expenses, and you can either pay the statutory flat rates (and the RHA overnight allowance is not one of those) under sec 289A, or you can apply to HMRC to pay a bespoke rate under sec 289B. HMRC should agree to the payment of the RHA rate, but you need to apply in advance for permission.
Interpretation?
There is no interpretation here, what you're demonstrating is a lack of basic tax and accounting knowledge, your client can't be "self employed" by his own limited company. If he is a director, he is employed by his company. It boggles the mind how much I see this cropping up.
I've reread and reread the original post and nowhere can I see that it was stated this client was self employed... In fact the very first sentence said that 'his client' had set up his own company. No confusion at all about self employment, so read carefully before you give sarcastic comments.
OPs can be edited (though abuse of this facility has lead to many to call for this facility to be removed).I've reread and reread the original post and nowhere can I see that it was stated this client was self employed... In fact the very first sentence said that 'his client' had set up his own company. No confusion at all about self employment, so read carefully before you give sarcastic comments.
The fact that the first respondent, who is also well established regular, mentioned self-employment indicates the question originally included those words. The OP is then trying to give the impression that others are misinterpreting their amended words, rather than just relaying what was originally written.
Yet another reason why editing OPs should be banned.
Just to add - all directors are deemed to be employed even if they dont get a salary.
Each time I see "my self-employed client is working through a limited company" I am very concerned because the tax and accounting rules are different.
To any adviser out there who is not sure. Team up with a local accountant and he will help you through the maze and this will help you avoid a Professional Indemnity Claim and may be a visit from HMRC.
Rj, are you really an accountant? You appear not to understand the first thing about the legal status of this lorry driver, and you cannot write grammatically. Are you actually the lorry driver? Anyway, if he is a director, he cannot be self-employed, and he can claim allowances like any employee.
@lauttlet. Please read the wording again. The guy has set up a company. Then is covers the Lorry Drivers allowance. No linkage between the two. I feel that your critism is unjust.