Fuel Mileage Allowance

Fuel Mileage Allowance

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Is it acceptable for a consultant to claim mileage allowance when travelling to a client’s office? In these circumstances would his home be classed as his business base and then any travelling to clients allowable?   He does not want to fall foul of the rule regarding not claiming travel cost when travelling to work.  Am I correct in presuming that it depends on where his place of work is?    Has anyone come across this issue before and if so I would be grateful for clarification as to whether it is allowable for him to claim that his place of work is in fact his home/office and then any travel is a genuine business expense? He travels from his home to a client’s office some miles away and obviously incurs that cost but is it allowable under tax rules?

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By Eddystone
29th Feb 2012 19:29

Mileage allowance

I'd say yes.  If he's based at home then he should be able to claim mileage when going to clients. I think the 'travelling to work' thing means regular commuting to an office somewhere.

However, if this refers to a single client week in week out, then it may be different and might call into question whether your chap should be self-employed at all.

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Euan's picture
By Euan MacLennan
01st Mar 2012 10:27

Do you really mean fuel mileage allowance?

Why wouldn't your consultant claim the authorised mileage allowance, currently of 45p for the first 10,000 business miles, then 25p, rather than the much lower advisory fuel rates, e.g: 18p for a petrol car of 1401 to 2000 cc?

If he is self-employed with an office at home, he should be able to claim the mileage.  If he works through his own personal service company with an office at his home, he will be able to claim mileage until such time as the contract is expected to exceed 24 months.

 

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