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Allowable parking/travel expenses?

Would this be allowed?

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Ltd co - sole director/shareholder.

Company does work for 2 companies within half a mile of each other. The director has confirmed these are rolling contracts i.e. not fixed term and travels to the workplaces 4 times a week or thereabouts and parks in the same car park.

During the year, the rolling contracts have exceeded 2 years.

So are we right in saying that no travel expenses (mileage claims) are claimable now as the 24 months have been exceeded so it no longer becomes a temporary place of work. The client is arguing that as they are rolling contracts it is still temporary - so on this I am just checking that I am not going daft.

Also the company card is used to pay for parking at this site, so as this now becomes a place of work (not temporary due to exceeding the 24 months) then would these still be allowable expenses for which no BIK is due? The director is not reimbursed for them as they are paid on the company card, so would they be allowable in the accounts and no BIK under the provision of providing parking at the normal place of work.

many thanks

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By Jholm
26th Apr 2019 16:33

Re: the 2 workplaces, there is an argument to say they should not have been allowed from day one. With them so close together, HMRC might deem them to be the same workplace. Guess it depends on how far the journey to it was but I doubt from what you said that there is a significant change in time, cost and direction between the two.

If deemed one, then it is not, nor ever was, a temporary workplace.

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