Question about expenses

[Sam B Dynamo Accounts]

Looking to change

Hi Jackthedog

I'm not going to cover off the travel issue as I'm sure this has now been answered, it is allowable given the nature of your current contract as stated.

The advice I want to give is about changing accountants, yes I have an interest because we are accountants but that's not why I'm commenting! Take your time when changing providers, the relationship with your accountant is a personal one, especially with contractor accountants as it is largely by phone/email and just because someone you know gets on famously with their accountant doesn't mean you will. There's a great sticky on here with names of contractor accountant firms who all have slightly different offerings and there's a list under the first-timers section on the web-site too - I would suggest you read a few posts on here, make a short list and call the ones you think you might like to work with - we're all happy to have a chat and answer your questions, then this way you get a feel for who you can work with and hopefully move forward without issue.

Sam

[FK1]

Ermm...

Strictly speaking she's not wrong. If you only have the one engagement since starting then that is your permanent workplace. It's only when you have more than one, or a reasonable expectation of getting more than one in a different location, that your home office kicks in as being your permanent workplace. And if you do get a second gig, then you can back claim your original contract T&S taxes.

Of course, most people make the assumption that they will continue elsewhere, but that is not a given.

Interesting nuance. So if he would back to permanent without having the second gig then that is in a affect one-off assignment and therefore...

The fixed term appointment rule can potentially prevent a contractor from claiming any expenses or tax relief at all. This is designed to prevent the client’s location for one-off assignments from qualifying as temporary workplace.

This rule might apply when, for example, an employee has left one job and is not starting the new one for three months and decides to contract for three months in between.

HMRC says that the client’s site cannot be a temporary workplace if the contractor is working on a contract “that can be expected to last for all, or almost all, of the period for which he or she is likely to hold, or continue to hold, that employment”.

Whether they are working via an umbrella company or limited company, the contractor will only be employed by that company for the duration of the contract, after which they start their new permanent job with their next employer. That means the client’s site cannot qualify as a temporary workplace and they cannot claim expenses and tax reliefs.

Travel expenses: travel for necessary attendance: fixed term appointments and agency workers: fixed term appointments
EIM32125 - Employment Income Manual - HMRC internal manual - GOV.UK