Any non IR35 reasons not to claim expenses directly from the client?

[vwdan]

To keep it simpler, I'd be looking for the client to pay for the expense items directly rather than me trying to claim it back from them after paying for the item myself.

E.g. pool/hire car, train tickets, hotel rooms, whatever, all paid up front by the client then it's their problem how the expense is accounted for.

Depends on the amounts in question. If not thousands just get them to pay you out of 'petty cash' in a brown envelope so no trace.

Agreed - this is what I'm going to try and do for the bigger stuff. The problem is the little things, like evening meals or even just when my schedule doesn't quite sort itself out in time.

Personally I'd prefer to send an itemised company invoice over - day rate plus itemised expenses.

I would too, the problem here is going to be the double VAT thing and as of yet I still can't find any solid reason why I shouldn't use their system.

[vwdan]

If you are claiming directly from the client then there must be a direct relationship between you and the client, so you are saying your Ltd is not involved. Do you have a contract between you personally and the client? Are you (and your client) happy not to be covered by the insurance policies your Ltd has taken out? Are you happy not to be protected by limited liability?

Are you on Fixed Rate Scheme? You're losing out on a little bit of money - the difference between the 20% VAT charged and the 14% paid onwards.

I'm sorry - but I really don't buy this. By them paying for my hotel, I'm voiding my business insurance - yeah right. They're engaging my Ltd company to do some work - even as a permie, I've stayed at hotels booked by clients before now. Are you saying that under those circumstances the company I was working for wasn't insured?

No fixed rate here.