Mileage allowance for sub contractors | AccountingWEB

Mileage allowance for sub contractors


I do the books for a builder and he has several sub contractors working for him.  He is self employed and not a Limited company. He pays the men an amount say £50 -£100 to cover their mileage if they travel more than say 20 miles from home.  Is this ok to do this?  Also should I deduct CIS from this amount?  He doesn't pay a mileage of 40/45p but just a set amount. I hope someone can help. Many thanks.

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No, it is not okay

zebaa |

why not ok ?

pauld |

Is the tax paid...?

zebaa |

Not employee

Marion Hayes |
Marion Hayes's picture

Why not just deduct 20% it

clegganator |
clegganator's picture

Agree with Marion and Clegganator

JCresswellTax |
JCresswellTax's picture