Travelling expenses

Travelling expenses

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Our client is a small sole trader. Drives a van which he needs to drive to 9using his own car) to collect at a depot to start his self employed work. Are the motor expenses of getting to and from the depot from his home tax deductible? In order to perform his self employed duties he needs to use his own car to go to the depot in order to drive the van so is the petrol etc.. wholly and exclusively  for the purposes of his business?

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By jndavs
11th Sep 2014 16:51

Doubtful

You will need to supply more information about what your client does, where he habitually works etc, but following the back of the Dr Samad Samadian case I would expect these to be disallowed.

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David Winch
By David Winch
11th Sep 2014 16:59

Ha
He goes home to sleep - which is not part of his trading activities. Dual purpose of travel so not allowable.
David

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Replying to Nick Elston:
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By hibernia
12th Sep 2014 14:53

His job is that of a van driver and he delivers freight throughout the UK. He drives to the depot using his own car to get the work assignment and then uses the van which is provided to him at the depot to do his freight delivery tasks. At the end of his work the van is left at the depot and he drives home using his own car.So it is effectively home to work to home element and he has kept detail mileage records for the car use. I suppose his could be classified as a contract driver who provides to labour but not the equipment (van).  Thanks :-)

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David Winch
By David Winch
12th Sep 2014 15:59

Home to work travel is disallowable.
David

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By cbp99
12th Sep 2014 16:45

Sounds like

the case of Jackman v Powell 2004 STC645 in which a milkman was denied the cost of travel to the depot where his milk float was kept, even though he undertook admin at home.

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By hibernia
13th Sep 2014 17:04

Thanks guy. I am inclined to agree with you that it is disallowable. a recent case - Dr Samadian v HMRC [2014] UKUT 0013 (TCC) would leans towards disallowance of the motor expenses. Pity as he has kept immaculate mileage records unlike Dr Samadian ! I believe, but I need to check, that he goes to the same depot every day to collect the van. It would be different if he was a small builder - I believe that the distinction is made in that case - and goes to a different building site on a frequent basis. Same for a pilot going to the aerodrome.

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