Originally posted by malvolio
View Post
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
24 month rule again
Collapse
X
-
The material prosperity of a nation is not an abiding possession; the deeds of its people are.
George Frederic Watts
http://en.wikipedia.org/wiki/Postman's_Park -
Originally posted by malvolio View PostIt's nothing to do with business travel, it's to do with personal tax liability. If someone pays you travel expenses personally, you have to consider the rules. If they don't - i.e. if they cover the cost themselves or YourCo recovers its costs via an invoice, and no money transfers to your personal bank account, then there cannot be a BIK.
It can still be BIK. Strictly speaking BIK can be provided by anybody to anybody. In practices it's not likely to be reported.
A client could, for example, pay for travel to your temporary workspace by providing a ticket or whatever. The fact that is is paid in this way make no difference at all to whether it is BIK.Comment
-
Originally posted by speling bee View PostI now have a new contract with a base outside London, but travel to London once a week. The train ticket is paid for by the client and booked through their system. Does a BIK charge arise from this, when it is the client, not my Ltd paying for it?
A new temporary workplace in Birmingham means the travel to London is now to a different temporary workplace and is not likely to be subject to the 24 month rule. However it is possible it is; think 40% and whether you should be applying a rolling period.
EIM32080 - Travel expenses: travel for necessary attendance: definitions: temporary workplace: limited duration, the 24 month rule
Who or how it is paid for is irrelevant, in practice, since the ticket is being booked by the client it is unlikely that anything will come of it.Comment
-
Originally posted by malvolio View PostI suggest you go and look up The Ramsay Principle.
HTH
If the client picks up the tab for travel, then they have an incentive to reduce the amount of travel you do, in order to save costs. You have an incentive to reduce the travel because you can be near home, plus you remove the uncertainty of any change in cost of travel. Sounds to me like good business practice rather than an attempt to avoid any BIK.Comment
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Comment