Lorry Driver, Overnight Allowance

Lorry Driver, Overnight Allowance clarification needed

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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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By Tim Vane
22nd Jan 2017 23:11

You describe the client as self-employed, but then state he is working through a limited company. Which is it? Are you even sure?

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By DMGbus
23rd Jan 2017 08:43

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.

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By David Heaton
23rd Jan 2017 10:58

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.

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By areuchee10
23rd Jan 2017 13:17

Thank you all,

[1] Tim thanks, apologies, there may be overlapping in my sentence! (interpretation may be??)

[2]DMGbus [3] David Heaton Thanks both of you for your valuable inputs,

are there any forms or letters to send to hmrc for seeking approval and would there be a link for approved rates?

Thank you again for your help in advance,

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Replying to areuchee10:
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By Lawrence82
25th Jan 2017 11:09

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.

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Replying to Lawrence82:
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By Nigel Wulcko
25th Jan 2017 14:54

Ah, you can edit, but not delete, it seems...

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Replying to Nigel Wulcko:
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By areuchee10
25th Jan 2017 15:11

Atleast I agree and accept, unlike criticising others!

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Replying to Lawrence82:
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By lauttley
25th Jan 2017 15:24

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.

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Replying to lauttley:
Stepurhan
By stepurhan
02nd Feb 2017 11:31

Quote:

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).

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.

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By pauljohnston
25th Jan 2017 11:51

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.

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By JDBENJAMIN
25th Jan 2017 12:26

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.

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By areuchee10
25th Jan 2017 15:04

Atleast I agree and accept, unlike criticising others!

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By pauljohnston
02nd Feb 2017 08:38

@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.

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