Tax allowance for fuel used to and from work on PAYE

[SXGuy]

Re: Tax allowance for fuel used to and from work on PAYE

SXguy I don't want to get into a argument on this but I have probably dealt with far more PSC/contractors that you mate and what you say doesn't make sense.

Firstly working from home has nothing to do with it, it depends on where your company is based, it may be at home or it could be an office. Secondly reasonable amount means nothing, it just has to be wholly and exclusively from business purposes, you could take a helicopter if your company could afford it!!!

The word reasonable was used on my part to not get in to a debate on how much that would be.

If your office was at your home, you are already at work, therefore travelling to another place of work, i.e on site, would be classed as traveling between two places of business, therefore you CAN claim that travel costs.

I have no idea about your background, but i can tell you, i have been successfuly claiming clients travel costs for quite a number of years, with no arguments from HMRC.

[mgfboy]

Re: Tax allowance for fuel used to and from work on PAYE

Ah well I.T Contractors are a whole different kettle of fish, they fall under whats known as IR35.

Basically, i.t contractors over the years have had to change from self employment to being a ltd company. I wont go into all of IR35, but lets just say, if you work for 1 company, you would technically be employed by them, so to get round this, you have to become a company yourself.

HMRC are rooting out all self employed people who have 1 contracted job and demanding the either become employed by that company or become a company theirselves.

£600 is actually quite reasonable for an accountant to charge for a ltd company. We charge more than that.

6k a year PAYE is NOT good advice for an i.t contractor, if HMRC were to inspect you, they would argue that you are avoiding tax by paying yourself a low wage and taking the rest as dividends to take advance of the 10% tax relif on dividends upto 10k.

This has been common practise for years, but im afraid HMRC are hot on this in recent years, and its no longer accepted.

You have to pay yourself a reason wage compared to the level of income your i.t contractor would receive. So its a balance between that and taking dividends.

Mate all personal service companies fall under IR35 it's immaterial if they are IT contractors or not.

As I sure your aware the rest of your comments, revolve around if they pass or fail under meeting the critiera under the badges of employement and how these rules are interpreted.

In a way the whole argument revolves around risk and while in the right conditions I'm all for PSC's , your not and we can debate this all day long.

Their is no correct answer to this one and it's all about the position you start from

[mgfboy]

Re: Tax allowance for fuel used to and from work on PAYE

The word reasonable was used on my part to not get in to a debate on how much that would be.

If your office was at your home, you are already at work, therefore travelling to another place of work, i.e on site, would be classed as traveling between two places of business, therefore you CAN claim that travel costs.

I have no idea about your background, but i can tell you, i have been successfuly claiming clients travel costs for quite a number of years, with no arguments from HMRC.

Mate I'm sure you have as any good accountant would, but I know a little of this area becuase I'm a EX IFA that used to specialise with a firm of accountants doing financial advice and tax planning for contractors/PSC.

[SXGuy]

Re: Tax allowance for fuel used to and from work on PAYE

I think we are both picking at straws here.

Im not about to mention every single business that falls under IR35, i simply commented on the one that was asked about.

There are a hell of a lot of other types which do not fall under it.

You are correct that a lot of the rules are down to interpretation, so i think perhaps we should leave it there, and maybe agree to disagree lol