Can anyone provide a little advice on the subject of claiming expenses as a self employed class 1 driver as I passed my test only a few months ago. Specifically, subsistance claims. I dont do nights out, but as the job means a lot of waiting round on bays I tend to do 13 or 14 hour days. I have spoken to HMRC about claiming for food outside of the normal work pattern, when I have to buy a small meal and drink in order to complete my job ie drive back to the yard. HMRC provided lots of information mostly about drivers who do nights out, which doesnt apply to me. If anyone can drop me some advice about this or any other aspect of what is acceptble as expenses I would really appreciate it.
They are not going to be forth comming in telling you how to save what you pay in taxes.
You can claim anything you need to operate as self employed, phone, clothing, food and even your lap top.
If you are self-employed (not a Ltd company) - when you are away from your base - you can claim a daily allowance to cover your food, and a nightly allowance if you are on a night out - without receipts. If you want to claim what you actually spent, then you need to keep all the receipts. Therefore the daily allowance is easier to work with.
Don’t know the exact figures, ask you accountant, they will add it into your books.
Any work related expense is deductable from tax. You should know this before you become self employed.
There are very few expenses that are set amounts like there are with PAYE.
You can claim for things like soap and toothpaste. You can’t see a client when you stink and have gammy teeth.
Pat Hasler:
Claim everything, food, phone, clothes, boots, fuel for your car to get to work and even your lap top.
Claim for everything ? Phone and Laptop usage - Not if you are using Nova Contracting
It doesn’t matter who you are contracted to, if you are self empoyed you can claim anything related to work and as a lap top could be used for business purposes you can claim it.
limeyphil:
Any work related expense is deductable from tax. You should know this before you become self employed.
There are very few expenses that are set amounts like there are with PAYE.
You can claim for things like soap and toothpaste. You can’t see a client when you stink and have gammy teeth.
So how does claiming for own transport maintenance fit into all this?
45p per mile does NOT cover £100’s worth of repair bills, especially when it’s capped at 12000 miles and it’s only worth 20p in the pound off your tax, which barely covers the fuel costs.
limeyphil:
Any work related expense is deductable from tax. You should know this before you become self employed.
There are very few expenses that are set amounts like there are with PAYE.
You can claim for things like soap and toothpaste. You can’t see a client when you stink and have gammy teeth.
So how does claiming for own transport maintenance fit into all this?
45p per mile does NOT cover £100’s worth of repair bills, especially when it’s capped at 12000 miles and it’s only worth 20p in the pound off your tax, which barely covers the fuel costs.
If you need a new clutch, gearbox, headgasket etc, then you offset it against your tax. basic maintenance is usually included in the mileage allowance. i think the more major expenses are classed as incidental expenses, or something on those lines.
The simple thing to do is not to worry about it too much. claim it, they can only say no.
…So, what you’re saying is that there appears to be an advantage to being self employed over PAYE in this area then?
As PAYE agency, I’ve not been able to claim it. I guess I’d like to have a foot in both camps by continuing with PAYE agency as main employer, but taking on an element of self-employed work as well… And use those earnings to offset for the “other” expenses of which getting the car fixed is but one.
JLS Driver SOS:
if fully self employed can you not claim for home as office and also claim for a percentage of your Gas and Electricity
Oh I wish!
Just had a letter saying my direct debit is being jacked up by no less than 60%.
FFS it went up nearly 10% during the winter, in line with the rest of the cartel they run.
Secondry agency appear to be paying me outside the PAYE system, which would suggest I’m self employed with regards to them. THey don’t pay me expenses, holiday pay, etc. I don’t get much work from them either, just enough to keep me on the books for when there’s no work where I normally go.
I understnad self-employed you get paid gross, but is one required to set up your own firm or do anything other than a tax return to make it all above board?
I’ve received my form, but the questions seem ambiguous as to what to put on it without making it sound like I shouldn’t get any tax offsets at all.
It’s like that previous post regarding “Don’t assuming HMRC will help you in ways to avoid paying tax”. Well that makes sense I guess.
OTTS:
Can anyone provide a little advice on the subject of claiming expenses as a self employed class 1 driver. Specifically, subsistance claims. I don’t do nights out but I tend to do 13 or 14 hour days.
Thanks.
OTTS
The following is from a well known Contractors Handbook:
Meal allowance:
If you work more than 5 miles away from your permanent address or
temporary workplace, you are entitled to claim for meals taken during the
course of your working day on the following basis:
If you are away for less than 10 hours, you can claim £5.
If you are away for more than 10 hours, you can claim £10.
NB: If you spend more than £5 and have a receipt, then you may claim
the full amount spent. Please note that the Revenue carry out ‘employer
compliance reviews’ in which they check such evidence. It is in your
interest to supply us with a small number of receipts over the £5
allowance on a regular basis to substantiate your meal claims.
(A minimum of 2 receipts bi-monthly)
PLEASE DON’T MAKE THE MISTAKE OF THINKING THAT THE £5 OR £10 GOES INTO YOUR POCKET - IT DOESN’T. YOU ONLY KEEP THE TAX AND NATIONAL INSURANCE THAT YOU WOULD NORMALLY PAY ON THE £5 & £10 AND (FOR SELF EMPLOYED) THAT REALLY MEANS ONLY £1.45 OR £2.90 IN YOUR POCKET.
A Self Employed Driver recently got an unexpected £2800 tax demand from HMRC because he could not substantiate his fiddled mileage because they checked his car mileage between electronic MOT tests. (That’s why, sooner or later, your Contractor/Umbrella company will want a copy of your car registration document (V5).
“HMRC may also check the distance between your home and your temporary workplaces.” quote/unquote.
Be careful - there is a tax avoidance clampdown going on.
Electricity (a portion of your household bill for running computer (for invoicing), Washing machine etc (for uniform and or clothing work solely for work)
Rent/Mortgage (a portion of this is claimable for office space for running your business (i.e your self employedness)
Stationery (anything you buy and use for business including stamps)
Cleaning products (that you use to keep your motor clean)
I also slap a bit into the entertainments budget for entertaining clients (you have to be a bit careful)
Uniform and PPE (unless it’s supplied by the person you are subbying for )
Telephone bill (portion of landline and mobile)
There’s more but if I told you you’d know as much as me and the jist of this forum seems to be sharing information is a bad thing
Bale Bandit:
“Rent/Mortgage (a portion of this is claimable for office space for running your business (i.e your self employedness)”
Be careful if you are doing this, HMRC will be able to bill you for capital gains tax on the value of the portion of your house you use for business, if you sell your house
