IR35 to the rescue!

The previous agent made a claim for motor expenses on the client's tax return representing the cost of travel from home to the sites. I am concerned that this is wrong as the client does not have a business address in the form of an office or supply any equipment other than a few loose tools.

Would there be any advantage if the subcontractor formed his own personal service company and claimed a mileage allowance on fixed profit car scheme rates? Even if IR35 applied the reduction in profit by applying the mileage rates would make this worthwhile.

(Query T15 885) – The wanderer.

There does not seem to be any particular advantage here in forming a personal service company. The expenditure should be allowable anyway whether the taxpayer is employed or self employed. The relevant matter...