Best way to deal with 'out of pocket' expenses?

[MugsGame]

thats if you claiming it from your LTD Co. Still £1.05 better in your pcoket than Mr HMRC.
But cant see why OP cant claim extra £5 out of pocket expenses on top of his meals to cover telephone calls, newspapers, drinks from coin machines etc.

Sounds like a fine idea. So how do I account for that - ie. claim from my company? What do I put it down as?

[Alan @ BroomeAffinity]

That's not what you said originally.

And even if he does take the extra £5 out on top its not extra money. Its got to come from somewhere.

There's a current thread discussing this issue. http://forums.contractoruk.com/accou...nses-back.html

[Spacecadet]

I stay in a hotel which they pay for directly,

This is considered bad practice for contractors operating outside IR35

[Alan @ BroomeAffinity]

That's a good point Spacecadet. If you are genuinely in business on yuor own account it is unlikely that a client would pay your expenses direct. Better that you pay them and then get reimbursed.

[TheFaQQer]

This is considered bad practice for contractors operating outside IR35

If the client can get a better discount at the hotel than you can, then it is your duty as a director of the company to get the best financial deal.

I'm not sure whether it's actually been used in any case that HMRC have won on IR35 or not (or even if it's ever been mentioned).

[TheFaQQer]

That's a good point Spacecadet. If you are genuinely in business on yuor own account it is unlikely that a client would pay your expenses direct. Better that you pay them and then get reimbursed.

When I worked for Oracle, plenty of the clients did this because they could get a decent rate, whereas Carlson Wagonlit couldn't negotiate a discount (if their performance is anything to go by).

e.g. Hilton Glasgow. Oracle rate £125 per night, room only. Client rate £75 a night, bed and breakfast. Client insisted on paying the bills, as they could do it cheaper than Oracle could.

[Alan @ BroomeAffinity]

Yip. Fair point Oracle. But it all goes back (IMHO) to the Part & Parcel test that HMRC would apply in the event of an IR35 review. Being booked in under Client Co is very similar to how a permie would be treated and this along with other matters (see the email address thread in Contracts) is to be avoided.

Probably on their own it would be irrelevant but a combination of factors would allow HMRC to develop a case.

[diesel]

That's not what you said originally.

And even if he does take the extra £5 out on top its not extra money. Its got to come from somewhere.

There's a current thread discussing this issue. http://forums.contractoruk.com/accou...nses-back.html

I think there 2 ways of claiming the extra £5/night:

1. From client direct on client expense form (if he fills one in).
2. From his LTD as his expense.

Suppose all down to the individual and how he thinks the end client will feel when they sign of the expense sheet. But personally if its an allowable expense - claim it!

[ASB]

I think there 2 ways of claiming the extra £5/night:

1. From client direct on client expense form (if he fills one in).
2. From his LTD as his expense.

Suppose all down to the individual and how he thinks the end client will feel when they sign of the expense sheet. But personally if its an allowable expense - claim it!

At the risk of being told what a dispensation is or isn't my *employers* dispensation does not allow the general claiming of the £5. What it does allow is the claiming of £5 for odds and ends provided it is on the *hotel* bill. However, the bill is not actually required to be seen due to said dispensation. Seems particularly bizarre set of terms.