Very worrying - the expenses thing

[eek]

It will catch everyone in business who has customers then, i.e. plumbers, "Please come to MY house and put that PIPE along THAT wall TOMORROW"

Yep.. It catches absolutely everyone doing everything :

You could almost say that that's the intent.

[VectraMan]

hmmm, Im not sure I understand this new rule. If Im working on behalf of my company I charge my travel (train tickets etc) plus things like hotels directly to my business current account already. I dont fanny around paying personally and claiming back, there is zero point doing that. So how would costs directly associated with trading and paid directly from my company bank account be impacted if at all? Its a business overhead not a personal expense. Are HMRC saying they would essentially audit everyones business costs to ascertain if they are a personal expense that doesnt incur CT relief?

Yep. Essentially it's a BIK.

They don't audit everyone's accounts of course, and if nobody ever looks you can get away with a lot more than this. But they might look at you.

[TykeMerc]

Yep. Essentially it's a BIK.

They don't audit everyone's accounts of course, and if nobody ever looks you can get away with a lot more than this. But they might look at you.

If they do you can bet that they will go back as many years as they can too, tax and penalties, any penny they can grab.

[SueEllen]

Normal people move where the work is. Choosing to work full time away from home all the time is crazy.
.

I was surprised to find a couple of years ago that some permanent medical staff e.g. nurses, paramedics actually can't find jobs in their local area. So as their children are at school in one particular area and their partner has a steady job there as well, they find a job somewhere else in the country and commute there.

I've also worked with business permies who were initially middle management level and above who worked away from home Monday-Friday as there weren't simply any jobs for their particular skills in their area. Due to this willingness to work away from home they often got promoted in the process making it less likely they could find a job near home.

Then there are people in London and the South East who do commutes of around 4 hours a day. Since there are no jobs for life they know that in 2-3 years they will find another job so there is absolutely no point making their children change school etc.

Point I'm making there is no normal and it's only in your small world do people lock, stock and barrel move to where the work is.

[Bluenose]

it's easy to blow £2k per month on expenses.

£85 a night hotel Sunday though Thursday.

£35 per day in food and drink.

£400 per month train.

not worth moving for a 12 month gig.

the examples Hmrc gave for IR35 v.2 are awful.

[SueEllen]

it's easy to blow £2k per month on expenses.

£85 a night hotel Sunday though Thursday.

£35 per day in food and drink.

£400 per month train.

not worth moving for a 12 month gig.

the examples Hmrc gave for IR35 v.2 are awful.

What do you eat?

[tractor]

...

Yep. Essentially it's a BIK.

They don't audit everyone's accounts of course, and if nobody ever looks you can get away with a lot more than this. But they might look at you.

If it becomes a GAAP then your accountant will disallow it. If you insist on claiming it then they will be required to grass you up.

[TheCyclingProgrammer]

hmmm, Im not sure I understand this new rule. If Im working on behalf of my company I charge my travel (train tickets etc) plus things like hotels directly to my business current account already. I dont fanny around paying personally and claiming back, there is zero point doing that. So how would costs directly associated with trading and paid directly from my company bank account be impacted if at all? Its a business overhead not a personal expense. Are HMRC saying they would essentially audit everyones business costs to ascertain if they are a personal expense that doesnt incur CT relief? cant believe that for a minute but as has been said further up only really for IR35 so the govt. dont consider you in business at all so null and void.

The only thing I claim personally is mileage but thats minimal.

It's irrelevant that your company pays directly for these things rather than reimbursing you - they are still employee expenses not company expenses. You should be reporting these on your P11D unless you have a dispensation (or its tx exempt like mileage payments) under the current rules anyway.

Under the new rules it would still be irrelevant - it's an employee expense and if not tax deductible from a personal tax point of view it will be treated as a BIK (so allowable against your company corporation tax bill, just like your salary, but incurs income tax and NIC).

Essentially all that will change is whilst currently the expenses went on the P11D and you entered them into your self assessment as expense payments and then the same amount as business expenses to offset it, you wouldn't be able to claim tax relief so it would be treated as taxable. There may also be additional employer NIC on the payments to consider too.

[mudskipper]

Lots of great examples of how the new rules are likely to affect contractors - please respond to IPSE's consultation, members and non-members.

See https://www.ipse.co.uk/news/2015/tra...-want-hear-you for details.

[vwdan]

What do you eat?

£3 - £5 for breakfast (More if you eat at the hotel)
£5 - £7 for lunch
£2 - £5 for a coffee or whatever through the day
£20 - £30 for a decent restaurant / hotel meal and a couple of drinks

Soon adds up!