Confused.Is renting a VAN on PAYE beneficial?

flexcon

Hi there.

looked at a few threads and online and am stuck on the following.

55 year old man PAYE worker.
Day job involves driving in VAN and delivering goods.
PAYE worker is not given any work van. VAN is his own bought a few years ago.
PAYE worker spends own money on diesel and maintenance and expenses.

He now wants to rent a van monthly at a cost of €500 for enterprise van hire for the purposes of work. Again any income is paid via PAYE at the company and is not self employed.

We have seen in this scenario he can claim back expenses. However, its all a bit confusing vs Self employed.

Can he claim back any expenses on the renting of the van long term, or even diesel costs on the day to day job?

Also - He drives daily to the company office to get the jobs for the day and then drives roughly 100km per day and then goes back to the office to check out.


Really thank you to any responses. I am normally very good at finding this info but this is very confusing.

Calahonda52

why is he not claiming mileage for the 100kms a day work related?

https://www.revenue.ie/en/employing-people/employee-expenses/travel-and-subsistence/civil-service-rates.aspx
these rates can be paid tax free for business mileage:
there is no need for a van: mad idea

flexcon

Calahonda52 wrote: »

why is he not claiming mileage for the 100kms a day work related?

https://www.revenue.ie/en/employing-people/employee-expenses/travel-and-subsistence/civil-service-rates.aspx
these rates can be paid tax free for business mileage:
there is no need for a van: mad idea

His employer will not pay milage rates. They say " It's included in the price of the jobs"

So where would that stand? And the Van is part of his daily job. Visiting premises. for jobs but its his van.

I know this is slightly irregular but 100% I know as I have double checked its his van and does not get milage allowance. Can he still claim then?

and thank you for the response

Calahonda52

Glad to help: is business use covered in his insurance?
who pays for it?
Is he well paid?

I don't know if he can expense mileage as an employee

flexcon

Calahonda52 wrote: »

Glad to help: is business use covered in his insurance?
who pays for it?
Is he well paid?

I don't know if he can expense mileage as an employee

Yes commercial insurance and they know exactly what he does. He pays for insurance. Well paid.

Basically odd jobs need to be done around the place and he does it for
them. He is their PAYE employee and they ask how much the job would be. He tells them and is paid through the company. He is in charge of anything else like buying tools or arranging transport with
his Van individually.

Almost like he is self employed and invoicing but he isn’t. It’s all paye.

Mrs OBumble

He needs a consiltation with a good tax accountant. Not just any accountant though.

What he is doing would usually be on a self employment basis. Usually PAYE employees can claim almost nothing but there may be some exceptions in extreme cases like this. Only an accountant familiar with how Revenue here operate in these cases will really know.

One of the advantages of leasing is that a replacement vehicle will be provided quickly if the van breaks down: if he's paid per job it may be worth figuring in the benefits of this.