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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3811
Experience:  FCCA FCMA CGMA ACIS
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In my line of work I have to travel to several retail premises

Customer Question

In my line of work I have to travel to several retail premises to work as self employed rather than from home. If I use the flat rate for mileage my allowance if about 3 times the amount compared to doing a manual calculation. Am I allowed to claim the flat rate when I cannot work from home and which postcode do I use for my business address?
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I'm Keith and happy to help you with your question.
The flat rate [usually 45p/mile for the first 10,000 and 25p/mile thereafter] is designed to compensate for all the costs of vehicle usage including capital costs. What is inadmissible is travel from residence to the same place of work and a test of frequency is usually applied to check this (ie travelling from home to office/factory every day on a regular basis). Presumably you are working from your home and gadding about from place to place to carry out the work required.
Once you have elected for the mileage basis for reimbursement of travel costs you cannot switch to actual costs for the same vehicle until you change same. The mileage basis is so quick and easy that the majority of users adopt it.
Your business address is presumably, from the tenor of your question, your home address. From what you say it would appear that the use of the mileage rate is appropriate.
I do hope I have helped put your mind at rest.
Customer: replied 2 years ago.

Thank you very much for this. A small additional query is if I claim for parking expenses will it need to be done via the actual cost method or can it be added to the 45p per mile calculation?

i.e. is the 45p rate expected to cover parking expenses or can they be claimed in addition?

Expert:  bigduckontax replied 2 years ago.

I am of the opinion that mileage allowances do not embrace parking charges also. These would have to be claimed as actual expenditure in addition.

Please remember to keep full records of the business mileages run and the parking charges incurred also as evidence in the event of some possible future inquiry.

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Expert:  bigduckontax replied 2 years ago.
Thank you for your excellent support.

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