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Self-Employed Capital Allowances for Cars

Single place of work allowable/disallowable?

Hi All, looking for some advice.

I am self-employed and currently working with one client in their offices.

I travel c9k miles to and from these offices each year.

I was looking at buying a car through the business but am I right that with a single client the mileage associated with this contract is actually not allowed when working out the business/private percentage and therefore I effectively can only base it on if I travel to other sites.

I can't really class my home as my office as I work majority of hours in their office.

Thanks!

 

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13th Jan 2019 00:38

Well for a start I’m not sure I even agree that you are self-employed. Start there first: what makes this engagement something other than de facto employment?

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13th Jan 2019 00:47

Thanks Tim
It will be approx one year contract with defined deliverables. I will base myself in their offices during the contract and maintain a couple of other limited work streams until next year.
Hope this clarifies?
Thanks

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to Iain McGregor
13th Jan 2019 10:02

Having a fixed term contract doesn't necessarily mean you're self employed. Lots of employees have fixed term contracts. Most team sportsmen, for example.

Have a look at this before you go further.

https://www.gov.uk/employment-status

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to lionofludesch
13th Jan 2019 10:58

Isn't what you describe in large measure an issue for the OP's client and not the OP?

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to andy.partridge
13th Jan 2019 11:11

Well, I'd be quite interested in my employment status. It might affect the expenses I could claim against my profits.

It's an issue for both parties, is it not ?

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to lionofludesch
13th Jan 2019 11:47

Not in my experience if the client has determined the status.

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to lionofludesch
13th Jan 2019 11:20

Thanks for the responses. Maybe not as straight forward as I thought.

I suppose in simple terms I’m paid a day rate, there is no fixed requirement to be in work and holiday/sick/any other leave is my responsibility.
But maybe the key here is I do have to be in their office to do the work?

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By Matrix
to Iain McGregor
13th Jan 2019 11:36

It depends on the terms of your contract. If you are treated as self-employed and HMRC take a different view then they could come after your client for the PAYE/NI they have failed to deduct. The risk is your client’s.

There are probably savings to be made from setting up a limited company but the risk then passes to your company (IR35) so may be best to stay as you are even though the travel is probably not deductible.

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to Matrix
13th Jan 2019 11:45

Thanks Matrix
I think I understand so might briefly chat with the client and I think the answer to my original question is no but I agree I am not keen on Ltd at this stage.

Thanks again

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