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Another 2 year expenses question

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    Another 2 year expenses question

    I have searched the forum for advice regarding this but I think my circumstance is slightly different (and my accountant has said it is ok to continue to claim, I disagree).

    For the last 2 years I have travelled from Sheffield to work in Bristol. My contract location is Bristol. Within this period I have been asked by the client to work in Derby and London and will continue to do so.

    In short, can I still claim the following:

    Rail (purchased through the business)
    Accommodation (purchased through the business)
    Mileage (When I drive to the other locations)
    Substance etc...

    Thanks in advance

    #2
    There are examples covering exactly this in the HMRC documentation. It's about Bristol becoming a permanent location. This will happen when you expect the contract to last more than two years, generally when you get an extension that will take you over 24 months. Any other sites are not considered permanent so you can claim travel to those.

    Not sure if you are supposed to claim the actual journey from your house to Derby or have to calculate it from your permanent location to derby though.

    Not sure why this example is different. Pretty straight forward situation.

    All the guidance and examples are here.

    https://www.gov.uk/hmrc-internal-man...anual/eim32065
    Last edited by northernladuk; 20 October 2017, 07:55.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

    Comment


      #3
      Originally posted by icemancomeths View Post
      I have searched the forum for advice regarding this but I think my circumstance is slightly different (and my accountant has said it is ok to continue to claim, I disagree).

      For the last 2 years I have travelled from Sheffield to work in Bristol. My contract location is Bristol. Within this period I have been asked by the client to work in Derby and London and will continue to do so.

      In short, can I still claim the following:

      Rail (purchased through the business)
      Accommodation (purchased through the business)
      Mileage (When I drive to the other locations)
      Substance etc...

      Thanks in advance
      Needs a bit more detail, but reading between the lines, I would say you can continue to claim travel etc. to Derby and London but not to Bristol - read up on the 40% component of the 24 month rule.

      Comment


        #4
        Originally posted by northernladyuk View Post
        Needs a bit more detail, but reading between the lines, I would say you can continue to claim travel etc. to Derby and London but not to Bristol - read up on the 40% component of the 24 month rule.
        Just to add that if the visits to Derby and London are to a temporary location (which they look like they are) you should really be recharging them to the client anyway if your contract allows that. They are a cost to your business imposed by the client after all.
        Blog? What blog...?

        Comment


          #5
          Originally posted by malvolio View Post
          Just to add that if the visits to Derby and London are to a temporary location (which they look like they are) you should really be recharging them to the client anyway if your contract allows that. They are a cost to your business imposed by the client after all.
          Yes - well that depends on your contract as you say.

          Comment


            #6
            Originally posted by icemancomeths View Post
            I have searched the forum for advice regarding this but I think my circumstance is slightly different (and my accountant has said it is ok to continue to claim, I disagree).

            For the last 2 years I have travelled from Sheffield to work in Bristol. My contract location is Bristol. Within this period I have been asked by the client to work in Derby and London and will continue to do so.

            In short, can I still claim the following:

            Rail (purchased through the business)
            Accommodation (purchased through the business)
            Mileage (When I drive to the other locations)
            Substance etc...

            Thanks in advance
            What substances? I've found a blank taxi receipt can cover a the odd gram or so without suspicion...

            Comment


              #7
              Originally posted by FrontEnder View Post
              What substances? I've found a blank taxi receipt can cover a the odd gram or so without suspicion...


              Great spot.
              'CUK forum personality of 2011 - Winner - Yes really!!!!

              Comment


                #8
                There's always a grey area around subsistence. One argument against is that you need to eat to live so it's not an expense that is wholly and necessary for your business. However, there is also guidance about paying for meals because you're having to travel/work away from your normal location.

                Comment


                  #9
                  If Bristol becomes a permanent location due to the 24 month rule (as somebody else said also consider the 40% rule) then I would say:

                  Travel from home to Bristol stops being claimable.

                  Any subsistence taken whilst travelling between home and Bristol including whilst onsite stops being claimable.

                  Travel from home to any of the other locations or between Bristol and any other location are claimable as is any associated subsistence but those locations will also be subject to the 24 month/40% rule in their own right (though if you’re at three locations then at least one of them must fall below the 40% threshold).

                  Comment


                    #10
                    Originally posted by ladymuck View Post
                    There's always a grey area around subsistence. One argument against is that you need to eat to live so it's not an expense that is wholly and necessary for your business. However, there is also guidance about paying for meals because you're having to travel/work away from your normal location.
                    There’s no grey area. Any subsistence taken in the course of a business journey or while working at a temp location are claimable as clearly outlined in HMRC guidance.

                    The rules are different for the self employed.

                    Comment

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