Can a sole trader claim mileage and subsistence?

That link sent by Money_man was very useful. My problem is that although I have bene keeping records of my Mileage for the past 4 months. I was uncertain if I could claim but kept a record anyway but I never knew the mileage rate changed.

Obviously in hindsight this is niave as petrol prices have already increased dramatically in those four months alone. Would anyone per chance have the rates for the 4 months previous to July, just want to back fill the logs??

I assume as a director If just invoice/expense myself on the milage?
 
Beginning to think my accountant was wrong. However, according to the Revenue site "guide to Completing 2005 Pay & File Returns" allowable expenses include subsistence:

Expenses and Deductions [131 - 138]
131. Salaries/Wages, Staff costs - this includes all staff remuneration (taxed and untaxed), staff
training, redundancy payments, PRSI, pensions, etc. The owner’s wages should not be included but
should be input in ‘Drawings’, see 140 opposite.
132. Sub-Contractors - this relates to building, meat-processing and forestry businesses.
Sub-Contractors are those defined by Section 531 TCA 1997.
133. Consultancy, Professional fees - include audit, accountancy, legal, architect, auctioneer,
surveyor, etc.
****134. Motor, Travel and Subsistence - include fuel, tax, servicing, repairs, insurance, travel and
subsistence reimbursed to staff including motor expenses, country money, etc. *****
135. Repairs/Renewals - these are costs incurred in the maintenance and upkeep of the business
property and the running maintenance and upkeep of the business equipment and machinery.
Enhancements or improvements to property are not maintenance and, as capital, should be added
back in the Adjusted Profit Computation.
136. Depreciation, Goodwill/Capital write-off - depreciation relates to business assets provided for
during the accounting period. It should be added back in the Adjusted Profit Computation.
Goodwill/Capital write-off relates to any write-off of the value of assets during the accounting period.
It should also be added back in the Adjusted Profit Computation.
137. (a) Provisions including Bad Debts - do not include provision for depreciation.
(b) If the balance is a loss tick
 
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Vicar?

Just wondering did you get a definitive answer to your query?
 
So as a sole trader, you can not claim your lunch.
But could you if it was a lunch with a client/potential client???
 
What? Surely if you take a client out to lunch it's an expense. Maybe not a VAT expense but one you can put through the books before tax. No?
 
Again, no. Entertainment expenses are not considered to be deductible against tax. A company could by all means reimburse an employee for taking a client out, but the company may not use such expenses to reduce its tax bill (i.e. can't claim them as a cost of doing business). Sole traders may not claim such expenses either. Think about it - if it was deductible, we'd all be taking each other out to dinner all the time!
 
extopia said:
Again, no. Entertainment expenses are not considered to be deductible against tax. A company could by all means reimburse an employee for taking a client out, but the company may not use such expenses to reduce its tax bill (i.e. can't claim them as a cost of doing business). Sole traders may not claim such expenses either. Think about it - if it was deductible, we'd all be taking each other out to dinner all the time!
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Ah the good old days!:rolleyes:
 
extopia said:
Entertainment expenses are not considered to be deductible against tax.
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I know of returns being submitted where staff entertainment is an allowable expense for tax purposes. Mind you, this was for corporation tax purposes not sole traders.
 
extopia said:
Again, no. Entertainment expenses are not considered to be deductible against tax. A company could by all means reimburse an employee for taking a client out, but the company may not use such expenses to reduce its tax bill (i.e. can't claim them as a cost of doing business). Sole traders may not claim such expenses either.
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Ok fair enough, maybe not entertainment expenses, but I was thinking more along the lines of a business lunch. Say perhaps you had to meet a client to discuss a project and the only free time you had was lunchtime, so you talked over a sandwich in a cafe. Would that be an expense?
Think about it - if it was deductible, we'd all be taking each other out to dinner all the time!
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Well, not necessarily ;) I wouldn't spend money on lunches all the time just to avoid tax. Sure where would be the benfit there if you're a sole trader. All your money would be gone on fancy foods in the end just to spite the taxman!
But I see your point :D
 
Hi,
Staff exps are ok - xmas party etc.
Any third party entertainment not allowed.
Advertising & promotion is ok but I don't think you'll get away with calling a meal for two in Chapter One advertising - even if it is in reality.

Question; what about a self-employed person away from his office for a couple of days - lunch ok in this case?
 
Pegasus said:
Question; what about a self-employed person away from his office for a couple of days - lunch ok in this case?
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Yes afaik, because you never got a chance to make up your hang sambo that morning, as the hotel wouldn't allow you into the kitchen!!
 
ButtermilkJa said:
I don't follow :confused:
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Advertising and promotion....the promotion (apart from the usual form) was usually taking clients for meals, drinks etc. Legitimate expense in most instances IMO as I certainly wouldn't meet up with some of these people otherwise. It used to be allowed but it was stopped a good number of years ago according to our accountant at the time.
 
Ah, I didn't realise the connection. You're right though, these should all be legitimate expenses. It probably all boils down to the fact that these systems were abused by people and so were stopped.
 
ButtermilkJa said:
It probably all boils down to the fact that these systems were abused by people and so were stopped.
Click to expand...

I wonder... It might just as easily boil down to an example of official pettiness and begrudgery on the part of this State. My understanding that the rules on this topic in the UK and other countries are much more liberal than here.
 
I'm a sole trader and my accountant has always said that I cannot claim food bought as expences as I have to "eat to live"
However,a friend of mine who is also a sole trader was told by his accountant he can claim and has been doing so for years.
I think if there was an audit in the morning I would be the happier having read this thread
 
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