contracting newbie...expenses

[ContrataxLtd]

So you don't eat if you're not working then?

Breakfast and dinner are claimable if your working day is "excessive" - not defined by HMRC (gosh!) but essentially 12 hours or more, or if you are away overnight. I've never understood the passion for claiming lunch, given 95% of us have a £5 sarnie we're saving a whole £1 a day, for which you need receipts and book-keeping for the P11D at year end. Why bother...

Mileage is 45p a mile for the first 12k miles, 25p a mile thereafter, resetting at tax year end. For routine commuting that's all you are really entitled to claim. And it's not petrol costs (or even diesel), it's to cover the total cost of the car. OK, the actual cost of the average car these days is around 60ppm, but HMRC haven't caught up yet.

Hi Malvolio

I'm sure it's just a typo but it's the first 10k miles not 12k as you posted above on which you can claim the 45ppm.

madge2014

As others have said, read up on the 24 month rule as that's a big part of what you can claim here!

Martin
Contratax Ltd

[malvolio]

Hi Malvolio

I'm sure it's just a typo but it's the first 10k miles not 12k as you posted above on which you can claim the 45ppm.

Oops, quite right, typo, Just checked - it's correct on my mileage spreadsheet!

[Martin at NixonWilliams]

In one GEOGRAPHICAL LOCATION!!!!!

I said broadly speaking - I don't see it necessary to go into that level of detail for the OP who is travelling to and from the same place of work each day, you are talking about a undefined technicality that rarely applies.

[TheFaQQer]

I said broadly speaking - I don't see it necessary to go into that level of detail for the OP who is travelling to and from the same place of work each day

To substitute the word "location" for "site" hardly seems a great burden of additional detail, but if that's the way you see it, you keep going that way and I'll keep correcting your mistakes for you

, you are talking about a undefined technicality that rarely applies.

Tripe - tell that to anyone who works for different clients in banking in London. Multiple clients, multiple projects, same location = no expenses once you know you are going to be there for over 24 months.

[madge2014]

Are you working through your own Ltd or an umbrella?

Limited company

[Martin at NixonWilliams]

To substitute the word "location" for "site" hardly seems a great burden of additional detail, but if that's the way you see it, you keep going that way and I'll keep correcting your mistakes for you

I have not made a mistake. I explained the rule in basic terms to somebody new to contracting in a way that is easy understand. The legislation uses the word workplace, not geographical area. I would say site is more indicative of the word workplace than geographical location is. There is only one section of the legislation that refers to the geographical area of the workplaces, and that section does not apply here.

Tripe - tell that to anyone who works for different clients in banking in London. Multiple clients, multiple projects, same location = no expenses once you know you are going to be there for over 24 months.

I deal with the rule every day for different clients and have done for over 6 years. My experience is that it is rare. If this applies to you or has done in the past then it probably applies/applied to your colleagues too and so it might seem more common to you than it is to others.

[TheFaQQer]

I have not made a mistake. I explained the rule in basic terms to somebody new to contracting in a way that is easy understand. The legislation uses the word workplace, not geographical area. I would say site is more indicative of the word workplace than geographical location is. There is only one section of the legislation that refers to the geographical area of the workplaces, and that section does not apply here.

You're right - the legislation and HMRC use the term "workplace" not "site" nor "location". However, the explanation of workplace in the HMRC guidance says "This rule is modified where the employee works at a succession of workplaces but the change of workplace has no substantial effect on the employee's journey to work."

I took your term "site" to imply "client site", ie. the location of that particular client. Obviously the term is ambiguous (otherwise I'd agree completely with your word "site"). Workplace is also ambiguous, unless you read the clarification notes and examples, which state that the key thing is the journey to work, so (by implication) the location of work.

I deal with the rule every day for different clients and have done for over 6 years. My experience is that it is rare. If this applies to you or has done in the past then it probably applies/applied to your colleagues too and so it might seem more common to you than it is to others.

Your experience is that it's rare; mine (which obviously I deal with every day because I work in a series of temporary locations, and have done for longer than six years) is that it isn't.

[TheFaQQer]

I explained the rule in basic terms to somebody new to contracting in a way that is easy understand. The legislation uses the word workplace, not geographical area. I would say site is more indicative of the word workplace than geographical location is. There is only one section of the legislation that refers to the geographical area of the workplaces, and that section does not apply here.

You may also want to make sure that the advice being given by the same firm of accountants is consistent - I took the phrase "geographical location" from the post your colleague made yesterday, quoted below:

FTFY - you may be in the same location but on different premises for different clients and still fall foul of the 24 month rule.

Quite right! For the benefit of the OP, TheFaQQer is referring to the fact that you could work at several sites for several clients and HMRC could deem that to be a single geographical location. A good example of this is people working for several different banks within the same square mile of the city of London – HMRC would class this as a single location for the purpose of this test.

I should add that HMRC do not actually define how close the places need to be for them to deem it a single location.

Craig

[LisaContractorUmbrella]

Limited company

Then, as others have said you can claim mileage rather than the cost of petrol; you can also claim for the cost of meals if travelling to a temporary location

[Batcher]

During my IR35 investigation HMRC claimed I had breached 'The Square Mile' rule.

I had worked at client A's site for 18 months, had a three month break then began working at Client B's site in the same city but 4 miles drive away.

As Client B also had a head office site near to Client A, they said it didn't matter that I worked in a different site and the 24 month rule should have kicked in after I knew after the start of my contract at client A would exceed 24 months. They also claimed the 3 month break wasn't enough as if to justify their claim.

I successfully defended the action thanks to my membership of PCG so I would urge new contractors to join up. It saved me £52k