Self employed and claiming back cycling to work mileage?

chuckcork

Anyone done this and can advise the process, how to make it happen?

I'm starting a new job on Monday and they are taking me on as a contract employee, telling me I'll be considered self-employed so responsible for tax and NI. As its a mere 18 miles each way I'm looking to cycle it (about the same travel time as the train would be) and I'd like to offset that against my income, any suggestions as to how to do this? Do I need a proper log-book for example?

I wasn't intending to have a company set up to charge against, if I can at least not spend loads on train travel while covering the cost of new tyres, chain etc in the time I'm working there that would be worth it.

shoulder_of_orion

I don't think you are allowed to claim travel expenses to your main place of work (from my memories of a similar situation).

Wooliferkins

This from London Cycling Campaign Web site
As an employer, you can pay employees up to 20p per mile tax free for using bikes for business travel such as going to meetings or visiting other branches.

You're not required to pay this, but employees can claim the balance as a deduction from their tax, so make sure your staff know about this.

This allowance doesn’t usually apply to home-to-work travel, although if you require a member of staff to work away from their normal workbase for less than two years then the allowance can be claimed.

Visit the HM Revenue and Customs website for more information on mileage allowances.

FeynmanC

SoL is correct, as I understand it.

You can, however, claim 20p per mile on other business travel for the miles you ride. Keep a log of what you do and take it off as expenses when you calculate your Self-Assessment tax form.

tailwindhome

If you want to claim 'home to work' expenses you must first be elected to parliment.

Gazzaputt

I'd get an umbrella company Parasol or alike. Pay then a fee to process your pay but they pay you PAYE and you claim expenses such substance and mileage. I'd claim car mileage as it's 45p per mile.

Underscore

Shoulder of Lamb wrote:

I don't think you are allowed to claim travel expenses to your main place of work (from my memories of a similar situation).

Yeah, but they're a contractor so their place of work will be their company's registered address until they've been contracting for the same company for 2 years. Until that time, the travel to the company's premises is a valid expense.

At least, that's how it used to be...

_

daviesee

Hi,

There's a lot to cover here.

There is a lot you can claim for but to benefit from company expenses you have to set up a company :?

Make sure you get a proper contract, this is very important. Some companies will use this technique to cut costs and responsibilities, and they can lay you off at a moments notice. :evil:
Then you will need an accountant or an umbrella company.

Now the good stuff.

If your registered company address is your home address then you can claim 20p/mile between businesses, or you can buy a company bike. The bike has to be made available to all employees but that's not a problem
You can also buy company safety equipment, helmet, reflective jacket, lights etc.
You can also supply your employees with a free company breakfast on designated cycle to work days.

This can all be done as I do it :P but setting up and running a company takes time, effort and money
You have to way up the pros and cons.

Good luck!