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Claiming mileage

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  • 11-11-2013 6:51pm
    #1
    Faith
    Moderators, Society & Culture Moderators Posts: 30,657 Mod ✭✭✭✭


    I'm starting a job with a small company who've asked me to invoice them for the work I'll be doing - i.e. I'll have to set up as a sole trader. We agreed on an hourly wage. The agreement is that I can largely work from home, but for the first few weeks, they've asked me to come to their office every day, which is 15 km away.

    In a casual conversation about running a business/being self employed, my employer mentioned mileage in relation to going out there every day, and separately how mileage is a great extra earner. I should have asked for clarification, but I didn't want to seem ignorant in front of her. Of course ordinarily in employment, you cover your own costs of getting to work, but since I'm going to be self-employed, and not an employee, should I be invoicing them for mileage also?

    Sorry if this seems like a foolish question. I'm completely new to the idea of being self-employed (had assumed I'd be an employee) and I'm finding it tricky to get my head around everything.


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    #2
    Stheno
    Moderators, Business & Finance Moderators, Science, Health & Environment Moderators, Society & Culture Moderators Posts: 51,688 Mod ✭✭✭✭Stheno


    You'd have to agree in advance with them that they are happy to pay mileage on those occasions that you have to travel to the office for them and agree a rate.

    I'd do this now before you start incurring costs and are not sure if you can invoice.


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    #3
    Faith
    Moderators, Society & Culture Moderators Posts: 30,657 Mod ✭✭✭✭Faith


    Stheno wrote: »
    You'd have to agree in advance with them that they are happy to pay mileage on those occasions that you have to travel to the office for them and agree a rate.

    I'd do this now before you start incurring costs and are not sure if you can invoice.

    Thanks. It had never crossed my mind to charge mileage until they brought it up, so I guess I'll just ask directly.


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    #4
    Eoin
    Registered Users Posts: 21,257 ✭✭✭✭Eoin


    I think your thread is better suited in this forum.

    As far as I know, mileage to and from a normal place of work is not normally tax deductible, even if you're a contractor; but I'm sure someone here can correct me. Given that it's a short term stint travelling into them, then maybe it wouldn't be considered a normal place of work?


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    #5
    barneystinson
    Registered Users Posts: 4,683 ✭✭✭barneystinson


    Sole traders can't "claim mileage" full stop.

    They are allowed to deduct expenses wholly and exclusively incurred in the course of their business.


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    #6
    Graham
    Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    barneystinson wrote: »
    Sole traders can't "claim mileage" full stop.

    They are allowed to deduct expenses wholly and exclusively incurred in the course of their business.

    Even if the OP can't take advantage of the tax benefits of being able to claim mileage, I don't see why that would stop him charging his customer an agreed rate per mile. Surely it would then be treated as any other income for tax purposes?

    *** I'm not an accountant, so perhaps someone more qualified than I could comment?


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    #7
    barneystinson
    Registered Users Posts: 4,683 ✭✭✭barneystinson


    Graham wrote: »
    Even if the OP can't take advantage of the tax benefits of being able to claim mileage, I don't see why that would stop him charging his customer an agreed rate per mile. Surely it would then be treated as any other income for tax purposes?

    *** I'm not an accountant, so perhaps someone more qualified than I could comment?

    Yep, OP can charge whatever they can get away with, but the title of the thread suggested to me they were asking about claiming a tax-free payment of mileage like an employee would..!


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