Expenses for working at client's alternative sites?

[dazza238]

Hi

My client is a large financial organisation with a number of sites across the UK including a head office in London.

So far, I've only worked at one of their sites in the South East. I live far enough away from this site to commute Mon/Fri and stay in digs during the week. The travel/accommodation costs are paid for by my ltd company and they're claimed as an expense for tax purposes.

However, my client has asked me to work at a few of its other sites over the coming months. It's likely I'll spend a week or two at a site, return back to the first site for a week or two, then go to another site for a week or two. I live far enough away from all the sites to commute Mon/Fri and stay in digs.

I thought I'd have to bear the cost of the travel/accommodation when at these other sites in the same way I do for the main site. But I've been told by another contractor that my client would need to cover these costs when I'm working at other sites.

Is this true? If so, how would the accounting work? Do I bear the cost as usual then invoice my client or would it have to be dealt with another way.

Thanks.

[RichardCranium]

my client has asked me to work at a few of its other sites over the coming months. It's likely I'll spend a week or two at a site, return back to the first site for a week or two, then go to another site for a week or two. I live far enough away from all the sites to commute Mon/Fri and stay in digs.

I thought I'd have to bear the cost of the travel/accommodation when at these other sites in the same way I do for the main site. But I've been told by another contractor that my client would need to cover these costs when I'm working at other sites.

Is this true? If so, how would the accounting work? Do I bear the cost as usual then invoice my client or would it have to be dealt with another way.

a) what does your contract say about expenses?

b) it would seem to me your ClientCo has a moral obligation to pay expenses to visit sites that were not made aware to you prior to starting the contract. (If you ask the decorator, once you've had a quote, to pop round to your mother's place 20 miles away and paint her living room instead of yours, you'll find yourself paying for the time and petrol.)

c) ask your client what they had in mind to pay for. Their procurement / accounts / contractor management people may already have a set of contractor expenses rules that your immediate management know nothing about. (I have come across this more than once; usually the official rules are actually far more generous than your management expect because they are based on the permies' rules.)

d) ask your client how they expect to reimburse you. They may already have arrangements; you won't know if you don't ask. ("We already have 50 Indian programmers in the Marriott; I'll add you to the arrangement." "We issue travel warrant for rail travel; you'll have to go 1st class I'm afraid." "We own a company flat at that site; I'll see if we can arrange for you to stay there."

e) at all times give the impression you do not expect to be one penny worse off as a consequence of their inability to get it right at the start.

f) where you live is up to you and it is your burden. Hence, if you choose to live away from the main site, I believe you should pay the commute & accommodation, just as you do. (There are exceptions to that principle, I know.) But you cannot be expected to live in more than once place at a time. So, the client should be paying for the travel and accommodation when you need to stay away from the initially stated site. This should mean you will be better off financially when you are on other sites. That's their fault for not getting it right at the start.

g) beware of what you claim for travel. Let's assume you live in Bristol and the client is in London. When they send you to Cardiff for a week I reckon you should only charge mileage from home in Bristol, not from the client in London. If they send you to Southend-on-Sea, I reckon you should charge mileage from London. That's usually ClientCo rules. However, if they want you in London on Weds and Cardiff on Thurs, then charge the full mileage.

h) You are a contractor. Assuming you are a LtdCo Director, you have a legal obligation to operate in the best interests of your LtdCo. You should, therefore, charge the client EVERYTHING you can get away with legally.

HTH

(now cue all the counter-opinions...)

[Sockpuppet]

I thought I'd have to bear the cost of the travel/accommodation when at these other sites in the same way I do for the main site. But I've been told by another contractor that my client would need to cover these costs when I'm working at other sites.

As RC said.

They don't "have" to do anything but would more than likely pay your travel to these new sites - if you don't ask you don't get.

I work on a few different sites and personally I don't ask for expenses to go to them becuase the site I should be working at is in London, a 2 hour commute on train and tube. The one I actually spend my tie at is 3.4 miles from my house and a 6 minute drive - so I think it'd just be rude.

[sweetandsour]

As the others have stated, it depends what you negotiate with your client.

The client would expect to reimburse expenses for any of their permies that they sent to work elsewhere so there is no reason for them to expect you to be any different.

One of my previous clients sent me abroad for a week. I billed them for the flights, hotel and evening meals.

I didn't bill them for the taxi to and from the airport (I could have taken the bus at a much lower cost so it was my choice) or the items I consumed from the minibar.

I included these expenses on my invoice. I did not put in a claim through the client's expenses system.

[RichardCranium]

HOWEVER, just for clarification, those answers were about what YourLtdCo charges YourClientCo. (Or possibly you personally claim and receive from YourClientCo.)

Don't forget that you as a person charges every last penny and metre to YourLtdCo as expenses. Not claiming expenses from YourLtdCo is just giving money away to the taxman. Whether YourLtdCo can or does claim them back from YourClientCo is immaterial.

[Billy Pilgrim]

Happened to me recently.

Took a contract at a specific rate - based from home/midlands (i live in Manchester)

Client requested I do more work out of their London office - I got the terms of the contract ammended so that I now invoice for any expenses occured for any of my London trips.

[dazza238]

Hi

Thanks for all the feedback.

Contract refers to the client paying for resonable expenses when properly and necessarily incurred. Your replies prompted me to do a bit more research. I then discussed the matter with the client. They've agreed to cover certain costs when I'm working at other sites and I will invoice them separately for these.

Thanks.