How will this work? Sub-contracted to end client in Spain?

[PinkPoshRat]

Hello,

I'm hoping some of you might be able to clear a few concerns I have regarding ability to claim business expenses. This is not a normal 'can i claim for this and that' sort of scenario - as I am going to be working oversea.

So... My new contract (outside IR35 at the moment) is with a French owned engineering company. They have a registered office in UK, and my contract is between my Ltd Co and the UK branch.

The actual end client is another company in Barcelona, and I will be working in Barcelona. Can I claim my travel and accommodation costs, as I'm unsure whether my 'normal' place of work is the UK as far as tax man and making my expense claims goes.

I've always used an umbrella company, which is why I now need a bit of help from you!

Cheers
PPR

[GhostofTarbera]

Claim your costs from yourself or end client ?


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[jmo21]

I assume expenses is not part of your contract. If they were, either your client would pay it for you, or you bill it back to them, and it is then no cost to you.

If expenses are not part of your contract, it seems pretty clear cut to me that your company can cover business travel/accommodation expenses. The only reason you are going to Barcelona is for business. Unless you live in Barcelona already.

Makes me wonder though in this case whether you would realise that effectively these expenses are being paid out of your day rate (all the money your company invoices). Your company can offset these expenses against corporation tax, effectively a 19% saving on the cost of the expense.

[Lance]

to me this is really simple.

You can claim all your travel, accomodation and subsistence from your company. Or your company pays it directly (perosnally I use an Amex card I get points on and claim it back).

Assuming that you can claim from the client. Your company just invoices the client (or agency) for the costs + VAT. Note that you are allowed to charge more than the cost, but most clients will want receipts.
If you can get the client to pay a per diem expense rate then you can make more profit for the company.

[PerfectStorm]

Make sure when you get your contract reviewed (you do do that don't you?) that when you package up their list of recommendations, add an extra section (in the schedule notes, expenses section or wherever) that says that ALL travel, mileage, accommodation and meals are expensable (+VAT) when away for work.

If they don't agree to that, at least you've found out early.

[David71]

You claim your travel expenses to and from Barcelona as per usual, don't claim any seperate living or travel expenses while you are out there.

Instead,claim the HMRC Scale rate for working overseas - this doesn't need receipting or recording amounts etc. as long as you can prove how many days you were abraod (I used to include location on my invoice to do this).

Current rate for Barcelona is 287.50euro per full day. If you eat cheaply and stay in a budget hotel, you still claim the full date rate. I rented a cheep flat while overseas and bought all my food from the local supermarket to keep costs down and claimed about 270euros a day..

https://assets.publishing.service.go...April_2019.pdf