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Bob, an IT contractor, lives in Manchester and drives to his current workplace in Sheffield every day.
He leaves his house at 7am and doesn't leave work until 7pm most days.
Bob can claim the 82 miles return journey he does in his car as a valid business journey. The first 10,000 miles per financial year are claimed 40p per mile, and then 25p thereafter. Bob has not yet completed 10,000 miles. The total claimable for mileage is £32.80 per day.
Bob can also claim costs of all meals taken whilst travelling. The combined cost of these meals is £18.45. Bob must keep his receipts to prove purchase.
Therefore Bob claims £51.25 per day, totalling £256.25 for a 5-day working week.
In this example Bob saves £103.99 in tax per week.
NOTE: The home to work tax concession is only available to contractors who intend to undertake several contracts - ie NOT just a one-off contract.
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