Sole Trader and Expenses

W

waterelect

Guest
I am a sole trader who is employed on a contractual basis by a number of companies to carry out various jobs. I invoice these companies on a monthly basis and include a price for expenses.

I am currently carrying out a job for a new company who are paying me a particular price for this. Recently I had to travel over 500 miles to do part of this job and as a result I charged them mileage. They have come back and said that they do not have to pay me this, that as a sole trader I have to claim it on my own tax.

Whay is your opinion on this- I have more driving to do for this job and am unwilling too. My car is petrol and not a commerical vehicle.
 
As a sole trader the price you quote a customer is inclusive of all costs unless otherwise stated. any business expenses incurred are tax deductable to you as a sole trader, eg mileage, phone, stationery etc.
 
However, there's nothing to say you can't charge a customer an amount to cover your expenses. The only thing is that you must treat this as income, while deducting the actual travel/transportation costs as expenses when computing your tax liability.
 
As a sole trader the price you quote a customer is inclusive of all costs unless otherwise stated. any business expenses incurred are tax deductable to you as a sole trader, eg mileage, phone, stationery etc.
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If by mileage you mean something like rate per mile then you can't deduct mileage, you can however deduct actual motor expenses i.e. petrol, service exps etc and depreciation in respect of business use only in other words expenses used "wholly and exclusively" in the business

You could, as extopia says include the cost in your overall invoice.
 
You could, as extopia says include the cost in your overall invoice.

Yes, but my query is about my invoice as the company I am working for are saying it is up to me to claim my mileage on my own accounts even though the driving is not included in the job spec.

I am wondering who is right?
 
Your invoicing strategy is entirely up to you. Perhaps they are reluctant to pay the expenses as the additional amount was not not agreed in advance with them.

The method by which you recoup your out of pocket expenses or mileage is not your client's concern.

As a sole trader pricing a job, you should always anticipate your expenses when quoting a fixed price, and include it in your quote (no need to itemise it).
 
I invoice these companies on a monthly basis and include a price for expenses.


It seems to me that you are trying to invoice your client twice. Once as a monthly expense and again as milage. You need to discuss this with your client and have a contract that where the work you do exceeds x number of miles that you then can charge them a further milage cost.
 
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