Taking people to work - Guidance needed please

Taking people to work - Guidance needed please

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Hi All,

I've had a question come up that seemed really obvious until the seed of doubt was planted, so hope you will be able to prove or disprove.

A director of a company picks up one of his employees on the way into work, and she pays him a contribution towards costs.
This director also takes a family member to work each day, and she also pays him a contribution.

My question is really, should he be declaring this as income, and then can he claim 45p per mile off of this.
This would obviously probably result in a loss, and so then could this be set off against his other income?

Thank you in advance for any help.

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By justsotax
01st Oct 2012 12:12

starting point.....

consider badges of trade....is the director arguing that he is trading as some sort of taxi, with a profit motive? ...fall at first fence?  

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By George Attazder
01st Oct 2012 12:49

Arguing that it's self-employment...

... would be a bit silly.  The income would be taxable, but the costs would be non-allowable, having duality of purpose.

This is called car-sharing.  If the contributions are merely intended to cover costs, as you suggest, they're not taxable.

How exactly did the seed of doubt get planted?

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