Claiming mileage small limited company

Claiming mileage small limited company

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Hi

We have a limited company of which myself and my partner are the sole shareholders and directors. My partner is a psychologist and is employed by the company for a small salary.

He works in various locations every week. Some of this has been regular one day or half day weekly work in the same location for over 2 years.

My question is, can we take it that his place of employment is his office in our home and therefore he can claim all mileage? Or is all his weekly travel to the same workplace commuting and therefore cannot be claimed? None of the work is under any contract and can be terminated at any time.

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By eastangliantaxadvisor
06th Jan 2013 09:24

The subject of the work place and office base has been subject to a number of tax cases over the years. The question that I would ask is,where does he perform his duties.

 

are any of these at the "home base"? Is there a contract which sets out where he should work?

 

There are rules that state that work to a tempoary workplace is allowable. you may care to look at the HMRC guidance at

 

http://www.hmrc.gov.uk/manuals/eimanual/eim32000.htm

In a nutshell, if the employee spends more than 40% of his time at a location, and it is anticipated to last 24 months or more, then this will not be a "temporary workplace", and will form his base.

 

If however, you are talking about one day a week or so on, I do not think this would fall to be considered as a tempoary workplace - and I would say you would be fine in claiming home to the place of work.

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