Is it allowable business mileage?

Is it allowable business mileage?

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I know that HMRC does not allow travelling to a place of work each day to be considered as an allowable business mileage.  I have a client who is a very small sole trader who travels every day to her place of work. Is there any possibility of using the flat mileage rates of HMRC or is there no option of claiming any business mileage at all excepting when there is a real case of business mileage for e.g. travelling to meet a client.  Will HMRC bother to question if AMR is used as the client in question is a very small business. Or should I just advise the client that business mileage can only be claimed if there is a real instance of it?

I will be grateful if someone can clarify this?

Many thanks in advance.

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By ACDWebb
10th Feb 2014 06:25

Have you not answered your own question?

"I know that HMRC does not allow travelling to a place of work"

followed by

"I have a client who is a very small sole trader who travels every day to her place of work"

So the answer to the question "Is it allowable business mileage?" is surely NO, particularly in light of the recent rulings in Samadian

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Universe
By SteveOH
10th Feb 2014 09:23

Are you really asking "Will she get away with it"?

Will HMRC bother to question if AMR is used as the client in question is a very small business?

The answer is probably "No". And, in all likelihood, she will get away with it.

However, it's illegal; you know it's illegal; and she will know it's illegal once you inform her. If her Tax Return is the subject of an enquiry then she will have additional tax and penalties to pay and the probability that her earlier Returns will be looked into as well.

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By autumnleaf
10th Feb 2014 09:38

Thanks for the advice

Okay, I just wanted clarification from other accountants in the field before confirming to my client.

Thanks once again.

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