Mileage for CIS Subcontractor

Mileage for CIS Subcontractor

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If a CIS subcontractor has no fuel receipts would it be acceptable to claim 40p per mile for business travel (as employees would)? His travel has been approx 5000 miles for the year.

If anyone could share their experiences I would be grafeful.
CH

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By User deleted
03rd Sep 2008 13:45

I'm not so sure.
Whilst there's a good argument here along the lines of "what's sauce for the goose", my interpretation is that the Statutory Mileage Rate legislation explicitly refers to reimbursement to employees. So, if your clientd was a director of a company, then he fits the criteria, but if he is self employed, then he does not.

Common sense should dictate that the same rule should apply relating to all use of private vehicles but, as we all know, common sense and the Revenue interpretation of a rule are often poles apart.

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By AnonymousUser
02nd Sep 2008 19:16

Re Mileage for Subcontractor
Dear CH

Reading between the lines of this question I get the impression that your client has told you he has travelled 5000 on business purposes but you have been provided with little evidence to back this up.

If you are looking for further evidence from your client to verify that claim of 5000 is genuine then ask for the following:
1) log of business miles travelled - If he can tell you it is 5000 them he must know the business travelling done
2) copy of the service book for the car and the % of business to personal travel done. Mileage is noted at each service, so you should be able to do a quick sensibleness check.

Either way I would explain to your client that while you can, on his assurance that the 5000 miles is valid business travel, include this within his tax return, you would have to advise him that should this return be selected for enquiry then he would have to ensure that information was available to support his claim - see items (1) and (2).

Hope this helps
Fiona
http://www.defacto-fd.co.uk

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By williams1862
28th Jul 2008 16:01

Depends
It depends on what method was used last year was it milage or actual costs as you must use the same method until there is a change in vehicles.

Carol

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By User deleted
28th Jul 2008 13:38

yes
why wouldnt he be able to?

40p for 1st 10,000 miles 25p there after.

dont forget you can't claim capital allowances if you go down this route

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By john_coller
08th Oct 2010 14:14

CIS340 Book Quote

I realise this is an old topic, but it is still relivant and it is the first result in google and I've just found something new out.

Quote from the HMRC Construction Industry Scheme CIS340 Official Handbook:

"Any travelling expenses (including fuel costs) and subsistence paid to the subcontractor must be included in the gross amount of payment and the amount from which the deduction is made."

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