Claiming travel expenses as a consultant / freelancer

[gottogetdressed]

Hello,

I can't seem to get a definitive answer anywhere on this, and this forum looks really helpful, so here goes...

I have recently set up my own Limited Company of which I am the sole employee, undertaking consultancy services for charities (fundraising mainly).

I currently have one 4 month contract working two days a week for a charity in London, and am about to start another (initially 2 days a week, then building to 3 or 4 when the first job is complete with another organisation based in Oxford, but with offices around the UK and some work being done from home).

With the London role I need to be in their offices' for my two days. The Oxford one will be all over the place.

What travel expenses can I claim for as an employee of my own company? Can I claim all my travel into London for the two days a week? What I can't work out is where my permanent place of work is! Is that my home as it is where my business is registered? If so, then that would mean I could expense all my travel - I think!

Sorry if I haven't explained it very well - any help MUCH appreciated.

Thank you!

when you say 'claim' do you mean account for them as expenses before calculating profit for income tax purposes? or do you mean charging the client for them?

i am not a ltd company but a sole trader so no idea if the same rules but i work from home so account all my travel as expenses for income tax purposes but in some jobs my fee is 'plus travel' and some it is 'inclusive of travel'.

i have an accountant who specialises in very small businesses and will do my year end accounts for £175 which to me is worth it (based on how long it would take me to do them myself and my day rate).

I would like the name of your accountant, maybenow.

I think your place of work is your home, and that you can claim expenses from your company for your travel costs to and from your client's offices, wherever those are.

Thanks both. That is really helpful.

I meant claim as in account for them as expenses - sorry I wasn't clear.

Accountants aren't just there for doing accounts (and presumably payroll, tax returns for the company and for you, extraction of profits through dividends etc.), but advise you on how to ensure you pay the correct amount of tax by claiming all allowable expenses.

Unless your company takes on a contract that is likely to last more than two years requiring regular travel to a particular place or places, you can claim travel expenses including mileage at 45p per mile up to 10,000 miles. You can also claim actual costs of subsistence.

I am technically an accountant
but as part of doing people's books I look strategically at what they are doing and use my 20 plus years of experience to advise them about ways to help their businesses
hence why I do not need to advertise my wares - they come to me.
If your accountant does not acts as the first port of call for all strategic business advice, change accountant

Re charging the mileage on to your client, this is something you should negotiate with them. Normally working fee-based would mean all out of pocket expenses on top. I do something similar with my clients - I don't charge mileage to and from their offices, but I do if I am visiting third parties on their behalf.