Self employed travel expenses

Self employed travel expenses

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Sorry if this has been covered elsewhere.  My client is a self employed tennis coach and coaches many individuals on a one to one basis 3 days per week at the local sports centre.  The remaining 3 days of the week (she works 6 days a week) she coaches at various other places.  My question is can she deduct for her travel (45p per mile) to the sports centre?  I don't believe she can because this is a regular journey.  However the regularity is only during term time and each week although different individuals may cancel but she would still make the trip for those who don't cancel.   The answer to this will make quite a difference to her tax bill so I wanted to double check.  Thank you.

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By tquinn18
23rd Jul 2014 17:05

Surely the home-base-home rule would come into effect regardless and she would have to deduct this from her final mileage amount as she regularly attends this 'base' it can be classed as a permanent place of work.

http://www.hmrc.gov.uk/manuals/bimmanual/BIM37605.htm

'Denning LJ’s analysis applies equally to any professional or trader who lives away from their business base and claims a deduction for the cost of travel. The fact that the taxpayer in such a case does some work at home does not make the cost of the journeys between home and their base allowable'

Just had to quote a bit of Denning... sorry! :)

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By Fredg
23rd Jul 2014 17:19

There are 2 tax cases relevant to your client.

The first involved a barrister who operated from his chambers, in the city, and also from home. His claim that his home should be his base and that travel to his chambers was  legitimate expenses was disallowed by the Revenue, as they said his main base was his chambers.

The second involved building subcontractors who may work on several building sites in a year, and the High Court determined that their home was their base and travelling to sites was then an allowable expense.

In your client's circumstance her regular attendance at a particular court would seem to fall with the first case, and travel to that venue would not be allowable. Travel to other venues on an ad hoc basis would seem to be allowable.

I hope that this helps.

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By Ian Lawrence
23rd Jul 2014 17:25

Thank you both. 

Thank you both. 

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