Business Set up mileage expense claims

O

OneMoreCupOf

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Hello

Have a question about mileage expenses during business set up.

To quote revenue..'
A business journey is one in which an employee travels from one place of work to another place of work in the performance of the duties of his/her employment but will generally involve a temporary absence from the normal place of work. '

During setting up of business if a person is travelling 3/4 times a day between home and place of work does this mean they are not entitled to anything?

Normal business would mean 1 journey, but during set up there may be many teething problems to sort meaning many extra journeys as well as journeys to suppliers,bank etc.

Any guidelines how best to account for these extra trips between home/work?

Thanks for reading.
 
Correct, they are just using fuel.

That's called "commuting".

Its not deductible.

Stay at work.
 
The point being if you have an office you are not entitled to mileage for travelling to it from home. If you choose to return home during the day thats your call.
 
Thanks Joe. Dont mind paying way from work - home, its just if you have to do lots of extra little trips to here and there I think it should be able to claim for - the price of petrol these days and all that
 
mmm. I understand but just doesnt seem fair...for eg a person could spend many hours doing market research pre-trade ,using car etc....when trading starts would have thought the person would be entitled to the mileage expense; when/if the company makes any money of course.

Will ask accontant as well, just wanted to get peoples thoughts.
 
OneMoreCupOf said:
Thanks, but you dont really shed much light on what I asked.
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I'm not sure what part of "you don't get paid for commuting" you didn't take from my post.

I agree that when you spend 1-3 hours per day commuting it seems unfair.

I grew very annoyed when I found out the tax position on this.

That's one reason why I work from a home office.
 
onq said:
I'm not sure what part of "you don't get paid for commuting" you didn't take from my post.

.
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The trouble with short answers such as yours give the impression the answer is obvious, which it is clearly is not (to most of us anyway)

I now understand that 'commuting' as in home to work is not claimable, what my original post was refering to was all the extra journeys in between including going back and forth from work place to home.

I spoke to a lady in revenue and the way she put it was you cant claim for your 1st journey to work in the morning and the last journey home, but you would be entitled to other journeys in between.
 
OneMoreCupOf said:
The trouble with short answers such as yours give the impression the answer is obvious, which it is clearly is not (to most of us anyway)

I now understand that 'commuting' as in home to work is not claimable, what my original post was refering to was all the extra journeys in between including going back and forth from work place to home.

I spoke to a lady in revenue and the way she put it was you cant claim for your 1st journey to work in the morning and the last journey home, but you would be entitled to other BUSINESS journeys in between.
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That's not the entire picture either though, as either you, or the lady in Revenue, have omitted the key word, which is business. A business trip will always be allowable to some extent, but a journey from home to work, or from work to home, is not a business journey. If you choose to go home for a cup of tea halfway through the morning, and again at lunchtime, none of these trips are business trips. Not for you as a director, nor for any employee anywhere.

If however, you are meeting a customer at your house, because your premises isn't yet ready for business, and you have to go between the two locations on business, then that is a business trip... Can you see that there's a substantial distinction there?

Where you undertake a business trip directly from home, you would be entitled to claim the lesser of: the distance you actually travelled (i.e. your house was closer to your supplier), or the distance from your place of work to the supplier.

So lets say for ease of illustration, you live in Drogheda, your business is in Dublin, and your supplier is in Wicklow. If you make a business trip direct from home to Wicklow, you can claim the mileage from the business(in Dublin) to Wicklow, and back to Dublin, notwithstanding that you never set foot in the office that day.

If you have a fixed place of work, you can't ever get mileage for travelling between home and work, otherwise every employee in the country would be entitled to do so.

So in your case, it's not that you aren't entitled to claim anything, you're just not entitled to be treated preferentially to employees who don't get to choose if, when and how they come and go, between work and home.
 
Yes, thats a good illustration you've put across.

Thankfully I'm not going too far distances, and my calculations so far the about to be expensed is very small.

I take your point about heading home just for a cuppa whenever you feel like it and claiming is a no no....this doesnt mean some journeys back home can;t be classed as business though....

Now, not taking the **** but say materials or tools are needed and they happen to be in the persons house, no difference in going back to get them or going to a supplier where I'm standing.

In any case if it is easier to account for, will probably put down the same distance of journey but state the destination as a supplier instead of home.

Anyway as I've said only talking about a small ammount of euro and I'm not trying to claim for personal journeys or normal journeys to/from work.
 
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