IT Contracting - Mileage

yop

Folks
Possibility of a contract coming up for me, the offer was early 40's for the role, its based about 1hr 15 drive from me.

The mileage will clock up and I explained this to the company, they then said that they could offer me 23 euro per hour as a contractor.

Now that rate is good, but if the company I contract into are Roscommon based and the actual work is based in Galway, can I then claim mileage, even though I live in Mayo

Confused anyone

kayos

Thats a horrible rate, by horrible I mean all they are doing is maybe using two dibbles of lube before they bugger you stupid. If you do a 40 hour week i.e. 8hours a day thats only a €184 per day contract. You'd be better off in dublin where rates are start to get into the €400's a day again.

But to your main question...
As a contractor you can claim mileage from your office, i.e. your companies registered office, to where you are working for your client. So you claim from say your home if thats your registered office to the site you conduct the work for your clients.

The clients main office being in Hong Kong or any where doesnt come into it. Its where you actually travel to.

Bogger77

I was based in Offaly, working in Dublin, through Agency as a contractor. I claimed millage from Offaly to job location in Dublin, as I was an independent contractor, not actually an employee of the agency.

In my case it worked out better, 150miles round trip(OY to Dub) vs 2 miles (Dub to Dub), and I claimed at civil service rate, and Revenue accepted it.

In this case, you'll be travelling from Mayo to Galway, so that's the distance you can claim for, if I recall correctly, and I'm not qualified to say for definite, rather than Mayo to Rossie land.

You're still a self employed contractor, so your place of business is where you have "office" (home office, maybe), and you're working offsite in Galway, is the way I understand this to be.

Bogger77

kayos wrote: »

Thats a horrible rate.

I was getting that for helpdesk work, in 2004, but market in the west isn't great I suppose.

kayos

Bogger77 wrote: »

I was getting that for helpdesk work, in 2004, but market in the west isn't great I suppose.

Helpdesk is one thing but if I remember right yop is development not support.

But your right a contract for dev work in Galway is rare these days.

yop

Thanks lads, aye its pitiful for a developer of 13 years, BUT, my alternative is to leave the wife and family here during the week and head to Dublin or get a salary in anyway.

The mileage thingy is a good thing now to be honest, as the cost of travelling from Castlebar to Galway is pricey on fuel as well as cost on the cr*p roads here as well.

The rate works out about 23*8*220 (days) which is not too good, but with the mileage its still better earning that as a contractor than as a PAYE worker I think.

grainnek

if your contracting there are a number of other things you can write off as expenses and also claim vat back on eg..
mobile phone and broadband
other car expenses (insurance,tax,repairs)
You can claim vat on diesel not petrol

yop

I know what you are saying, thanks Grainne.

kayos

grainnek wrote: »

You can claim vat on diesel not petrol

Is that not only the case for a company car?

If its a company car then ya you can claim all sorts but get hit on the other side with BIK.

If its a personnal car I understood you could not claim these motoring bits, outside of your mileage allowance.

ntlbell

yop wrote: »

Thanks lads, aye its pitiful for a developer of 13 years, BUT, my alternative is to leave the wife and family here during the week and head to Dublin or get a salary in anyway.

The mileage thingy is a good thing now to be honest, as the cost of travelling from Castlebar to Galway is pricey on fuel as well as cost on the cr*p roads here as well.

The rate works out about 23*8*220 (days) which is not too good, but with the mileage its still better earning that as a contractor than as a PAYE worker I think.

Completley irrelavnt, but I always thought you were female :eek:

If you're setup as a LTD company IIRC you can put the diesel of as expenses. (check with accountant)

but anything used for business should be put off, mobile phone/laptop/trainings/software etc etc

eden_my_ass

kayos wrote: »

Is that not only the case for a company car?

If its a company car then ya you can claim all sorts but get hit on the other side with BIK.

If its a personnal car I understood you could not claim these motoring bits, outside of your mileage allowance.

Also if you're doing the work 5 days a week in the same office, then you cannot claim for mileage getting from home to that office. The mileage applies to travel connected to the main office and offsite. Revenue won't accept (if they audit you) a home office explanation if you're spending 40 hours in the same company office. I 'think' you could circumvent it by working a couple of days a week from home, but not sure. Ask an accountant to be sure!

grainnek

kayos wrote: »

Is that not only the case for a company car?

Apparently not.Im currently contracting and i claim a % of my diesel and all other car costs.....have been doing it now for last few years and accountant said it was fine? Also claim the vat on this % too

yop

ntlbell wrote: »

Completley irrelavnt, but I always thought you were female :eek:

lol, not sure what gave you that idea

kayos

grainnek wrote: »

Apparently not.Im currently contracting and i claim a % of my diesel and all other car costs.....have been doing it now for last few years and accountant said it was fine? Also claim the vat on this % too

Hold on so you privately own the car. Claim mileage allowances for the mileage you do and then claim diesel, servicing, tyres etc off the company and then the company claims the VAT back?

If this really is ok I'll kill my accountant

ntlbell

yop wrote: »

lol, not sure what gave you that idea

a girl who could code.

build houses.

decorate.

You were a dream!!

Sorry I read this thread

grainnek

kayos wrote: »

Hold on so you privately own the car. Claim mileage allowances for the mileage you do and then claim diesel, servicing, tyres etc off the company and then the company claims the VAT back?

If this really is ok I'll kill my accountant

I think the difference here is that i dont actually claim milage allowance for the milage it do....instead i put down a percentage of my overall car costs....so say for example i us my personal car 50% of the time for business i then can claim 50% of my diesel,car repairs,insurance,tax etc as an expense and also the vat on these.

not sure what would actually work out better!...what is the allowance per mile that would be acceptable?

kayos

grainnek wrote: »

I think the difference here is that i dont actually claim milage allowance for the milage it do....instead i put down a percentage of my overall car costs....so say for example i us my personal car 50% of the time for business i then can claim 50% of my diesel,car repairs,insurance,tax etc as an expense and also the vat on these.

not sure what would actually work out better!...what is the allowance per mile that would be acceptable?

Ah I get ya. For a while I thought you were claiming both. I can see that your way could be good depending on the split of usage.

As for the rates per mile or KM. Stick to the civil service rates and the tax man says nothing, go above and he'll be looking for answers.

yop

Thanks for all the information. I would really want to get a good accountant to sort it out.

Thanks

grainnek

spoke to my accountant regarding claiming milage as apposed to claiming a % of car costs and she said

"unfortunately you are self employed and therefore cannot claim mileage rates. Your deduction is based on actual expenses incurred. If you were an employee or an employee of your own company you could claim mileage."

yop

Ok thanks Grainne, but you can go the way you do and take a % of the car expenses as "Expenses"?

grainnek

yes that is what i do and i also claim a percentage of the diesel i use and also the vat back on that % of those car expenses and diesel

ifah

grainnek wrote: »

spoke to my accountant regarding claiming milage as apposed to claiming a % of car costs and she said

"unfortunately you are self employed and therefore cannot claim mileage rates. Your deduction is based on actual expenses incurred. If you were an employee or an employee of your own company you could claim mileage."

big difference being self-employed and contracting as a ltd company.

yop - I assume as an IT contractor you'll be a ltd company.

Also - what will be your normal place of work ? In your case I would say the company who is contracting you in Roscommon will be your normal place of work and you'll claim mileage from there to client in galway and back.....

kayos

grainnek wrote: »

spoke to my accountant regarding claiming milage as apposed to claiming a % of car costs and she said

"unfortunately you are self employed and therefore cannot claim mileage rates. Your deduction is based on actual expenses incurred. If you were an employee or an employee of your own company you could claim mileage."

Ah you are a soul trader. Explains a lot. Fully Ltd here.

Raekwon

kayos wrote: »

Ah you are a soul trader.

You make him sound like he works in recruitment

kayos

Raekwon wrote: »

You make him sound like he works in recruitment

doh....