I currently do the books and accounts for my husband a part time consultant and my son a freelance musician. My husband often drives my son to his gigs, to new contact work and to generally fetch and carry music equipment. HMRC has advised me that my son can be charged for the trips and that he should declare the cost as expenditure and my husband as income. The question is : does my husband declare this as other income (unrelated to his own business) and if so , is he able to claim the usual 45p allowance for each mile. My son is charged 15p per mile at present, therefore my husband would be claiming more than he has received. would the final calculation just become part of the whole income / expense?
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Ignore it
I assume that HMRC said "he can charge for the trips" (though why they would bother I can't imagine) and that you mean that your husband charges him 15p per mile.
The question really is, Why Bother?
Why involve yourself with unnecessary book work and HMRC involvement? Just ignore it from everyone's point of view and have a quiet life.
Tax
So at 45p a mile and basic rate tax we're looking at a reduction in tax of
1500 x 45p x 20% = £135
How much is your quiet life worth ?
Not employed
I assume the husband is not employed by the son. If not, the 45p can't apply as the husband isn;t an employee.
It can apply, by concession, under the "simplified expenses if you're self-employed' arrangements", but that would mean claiming a loss on his self-employment. Good luck with that!
Surely ...
I assume the husband is not employed by the son.
Well, surely that could be arranged ........
My objection would be that it just seems a roundabout way of dealing with an essentially domestic matter.
I take it the son is unable to drive through age or lack of a licence ??