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What mileage rate do you charge as a freelancer?

(10 Posts)
Innat Fri 14-Jan-11 13:56:34

I'm just starting up and need to provide a breakdown of costs for a purchase order to be raised.

Just wondered what people used here as in my previous job we paid different rates for employees and freelancers.


lucykate Fri 14-Jan-11 14:01:47

the hmrc allowance is 40p a mile

Lizcat Fri 14-Jan-11 14:29:13

Fixed profit HMRC scheme 40p per mile for first 10,000 then 25p per mile. This saves you having to get involved in put income and expenditure due to car on tax return.

Innat Fri 14-Jan-11 14:31:35

Thank you both - that's very helpful

Talkinpeace Fri 14-Jan-11 14:34:54

depending on how many clients you have, it may be best to quote round sum prices including travel, for the job rather than by the hour
as HMRC are clamping down on pseudo employment.

Innat Fri 14-Jan-11 14:42:13

Hi Talkinpeace, thanks for your reply. Do you mean people who should really be employees rather than freelancers?
I have been asked to deliver a workshop by an organisation who have external funding to pay for this. I know they have £150 which is what I was going to originally invoice for as a complete package, but they have asked for a breakdown of costs and mentioned an hourly rate and expenses.
It is something I am hoping to do more of in the future to different organisations...

Talkinpeace Fri 14-Jan-11 16:21:10

Hi Innat,
That sounds fine.
If you are working for several organisations then you are genuinely freelance - or as DH and I call ourselves Free Range.

There is an issue with big companies hiring people on a self employed basis to save costs who HMRC deem to be really employees. Guess who gets hit with the penalties... hint, bit the big guys!

Helenagrace Fri 14-Jan-11 20:42:53

The advice from our accountant (and from a HMRC employee at an Employertalk event) has been to avoid any mention of an hourly rate and expenses and stick to a fixed rate for the job. Employees are entitled to expenses, freelancers shouldn't be.

I run training courses and workshops and just charge an all-in daily or half-day rate. If it's a long way to travel I factor that in before I quote my price. DH's company has London, South East and everywhere else rates to reflect the additional costs of working in the SE.

Even if you work for several organisations HMRC could decide that you have several part-time "jobs".

Apparently the government are supposed to be reviewing IR35. Let's hope it happens soon.

Talkinpeace Fri 14-Jan-11 22:08:17

IR35 Only applies to Ltd Co's as their tax regime is more beneficial than self employed
but yes,
I'm a irm believer in "price" work.

Helenagrace Fri 14-Jan-11 22:35:19

Ooops I had forgotten that! IR35 is a nightmare for us.

I'm not sure I feel like limited companies have a more beneficial tax regime when I pay my corporation tax bills but deep down I know they do!

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