In the past staff were instructed to include mileage as a cost of operating a motor vehicle when an EU member incurred mileage expense as a cost of producing self-employment income.  Do not include mileage in the cost of operating a motor vehicle (code CV).  Expenses considered as a cost of operating a motor vehicle include but are not limited to oil changes, repairs, and tires for a vehicle used for business purposes.  Use transportation on the job (code TO) when a self- employed EU member has mileage expense as an expense of producing income.  Enter the number of miles claimed as a weekly expense of producing income in the "Weekly Miles" field on the Income Expense (FMX1) screen.

Code ML (meals) is changed and is a deductible expense of producing self-employment income. 

Please note that mileage and meals are not an allowable expense for all types of self-employment income or when the individual is reimbursed for those expenses. 

EXAMPLE: Mr. B, a door-to-door salesman, drives 50 miles per day, an average of four days per week selling tools.  He is not reimbursed for his mileage.  Mr. B incurs mileage expense that is an allowable expense of producing income.  Enter the number of weekly miles driven by Mr. B in the Weekly Miles field on the Income Expense (FMX1) screen as transportation on the job (code TO).

Ms. C routinely drives 10 miles per day, six days per week, from her home to her antique shop where she conducts her self-employment enterprise.  Ms. C does not incur an allowable mileage expense.  Once a month Ms. C drives 100 miles from her antique shop to pick up supplies for the shop.   Mileage and meals to and from the business site to the business supplier is an allowable expense of producing self-employment income.  100 miles divided by 4.333 = 23 miles per week.  Enter 23 miles in the Weekly Miles field and meal expense (ML) claimed by Ms. C on the Income Expense (FMX1) screen. 

Mr. W, an over-the-road truck driver incurs meal expense for three meals a day, an average of four days per week while he is away from home delivering a load.  Mr. W is not reimbursed for his meals while he is out on the road.  Mr. W's meals are an allowable expense of producing income.  Since he is paid for the number of miles driven, mileage is not an allowable expense of producing income.

Ms. A, a self-employed cosmetics salesperson, is provided a vehicle by the company to use while on the job.  Ms. A is responsible for the upkeep and repairs to the vehicle.  Any expenses incurred by Ms. A for operating the vehicle while on the job are allowed as an expense of producing income.  Enter those expenses as cost of operating a motor vehicle (CV) on the Income Expense (FMX1) screen. 

• Review this memorandum with all appropriate staff.

•  Review the expenses of producing income for all self-employed EU members at the next case action.