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Should i claim mileage on CIS client

Can my client claim 18k mileage against income for tax return

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I have a client who is paid via the CIS system. I am completing there tax return and they have told me they use a van which has done 18k thorugh the year.

I cant see their previous tax return so im not sure if the previous accountant used capital allowances or not. I was going to put through the 18k with first 10k at 0.45p and rest at 0.25p. Has anyone had a similar issue with there clients?

Am i ok to put this through on the assumption its correct or should i be asking to see evidence?

 

thanks in advance for any help on this

 

Replies (10)

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By lesley.barnes
12th Nov 2019 13:29

I won't risk it. As you say you don't know the previous tax treatment of the van, if they have used AIA it will impact on other costs - insurance, road fund licence etc. Why can' t you get a copy of the previous tax return and accounts? You need to ask your client for a copy or get a copy from the previous accountant.

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By bernard michael
12th Nov 2019 13:46

That's a lot of miles.Is it based on a van log or the client's estimate?? If the latter is it commensurate with the work they do

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By CMaccounting
12th Nov 2019 14:08

Thanks for your responses.

I was on the same thinking of you guys. I have asked them for details of his previous accountant but he says he has lost the details.

Also, I have asked for more details regarding the mileage. I have a feeling he is trying to get me to put through the mileage to increase his refund from HMRC. But I have said I wont be putting it through with out knowing the correct treatment.

He is a gas engineer so mileage may be genuine, but it does seem high.

If the client insists I put it through using the 0.45p/0.25p treatment but on the basis that I haven't seen the previous treatment and he accepts the implications if HMRC investigate, should I put it through?

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Replying to CMaccounting:
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By JoF
12th Nov 2019 16:14

[quote=CMaccounting]

'' I have asked them for details of his previous accountant but he says he has lost the details. ''

Would you not have that info given that you would have sent a Prof Clearance letter?

I do think he is trying it on though with that feeble excuse. Perhaps he should just provide you with any accounts and his tax returns instead of the Accountants info.

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By Accountant A
12th Nov 2019 15:08

That's 82 miles a day every day for, say, 220 working days. 41 miles there and 41 miles back.

Ask him where he was working.

If his van is 3 years old, have you checked the MOT mileage which you can do online if you have the registration?

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By lesley.barnes
12th Nov 2019 15:19

I think he is trying to pull a fast one for some reason. How can he not know who his previous accountant was? He must know were he dropped his paperwork off, email address or even an invoice. Have you checked to see if there is an invoice from the previous accountant among his receipts, is their something on his bank statement showing who he paid? I wouldn't want to put it through without some proof, if he starts "insisting" that you put his figures through I would be inclined to wave him off.

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Hallerud at Easter
By DJKL
12th Nov 2019 15:34

Copy of most recent MOT would help, it will give you mileage when done plus previous two mileages when done, if has owned the van a while might assist, also get copy V5 and copy van purchase invoice to see what mileage was when he purchased and likely date of any AIA claim. (By chance just looked at a van MOT today, we are selling our 10 year old clapped out works van with buyer collecting in the next hour)

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By Tosie
12th Nov 2019 22:00

Assuming that you are going to use the mileage scheme you need to work out the business miles by reference to his job sheets and sites worked rather than van mileage. Almost certainly every other person in the pub will get a refund 10 times what you calculate but do not be bullied by him. He is playing you for a fool expecting you to belief that he does not know the name of his previous accountant. Personally I would proceed with extreme caution on this one. It maybe that his previous accountant is still waiting for his fee.

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By JDBENJAMIN
12th Nov 2019 23:33

Obviously he is lying about having lost the details of the previous accountant. Nobody forgets who their accountant is, and he must have a thousand emails, documents and stored phone numbers with the accountant's name. I would just make that point to him, and refuse to act, on the basis that he is trying to deceive you.

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By Matrix
13th Nov 2019 07:16

I would ask for details of the previous accountants and/or a copy of the last tax return.

If these are not forthcoming then call HMRC and either ask for a copy of the tax return or ask them to look up whether he was on the cash basis. Depending when the van was bought, this may give you the answer.

If you really want to act (so your client is just disorganised - to be claiming such a late repayment may suggest), then just verify the mileage by asking about the jobs and then claim at the petrol cost instead of at mileage rates. If he disagrees then the info may suddenly be forthcoming.

If you think he is just being dodgy then walk away. Does he have the CIS certificates?

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