Casual Driver

Casual Driver

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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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By The Grammar Police
05th Feb 2016 16:21

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.

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RLI
By lionofludesch
05th Feb 2016 16:31

Well, it depends

How many miles are involved ?

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Replying to frankfx:
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By Mrs C
05th Feb 2016 17:08

Est about 1500 miles per year.

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RLI
By lionofludesch
05th Feb 2016 17:16

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 ?

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By davidgoodall
08th Feb 2016 11:06

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!

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Replying to Truthsayer:
RLI
By lionofludesch
08th Feb 2016 11:37

Surely ...

davidgoodall wrote:

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 ??

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Replying to Jlied03:
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By Mrs C
09th Feb 2016 12:25

Yes, the son is unable to drive. When he has other drivers, they too invoice him, but as they are in the same business and usually on the same gig, they are able to claim allowances on their own accounts, while my son counts it as a travel expense.  My husband has a small part time business on top of his regular full time employment, so this 'extra income' would be declared but he would be taxed on it too as it isn't relevant to his own business. 

 

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