Expenses for contracting out town ?

[2uk]

If you negotiate a contract in a different town ( where you will have accommodation/etc expenses ) , should you count for these expenses in the contract rate, or should you request them paid separately? I guess it goes both ways.

[Sockpuppet]

In the rate. Expenses paid can be seen as permie IR35 ness.

Also if you get them in the rate and you can do it cheaper you get more money.

[2uk]

Thaaank u.

[Billy Pilgrim]

In the rate. Expenses paid can be seen as permie IR35 ness.

Also if you get them in the rate and you can do it cheaper you get more money.

Is it REALLY??

Current job I am on now I tried to negotiate an 'all in' daily rate with the consultancy. They INSISTED on daily rate (based upon 8hr typical working day) PLUS expenses...since that was how they were paid paid by their end client....

Infact they insisted on me invoicing in 2 hr time periods - since again that was how they were billing their end client. therefor if I do 4 hrs work I bill for 1/2 day....do 12hrs I bill for 1 1/2 days etc.

Anyone any advice on how that will affect IR35 status - if indeed it does ??

Also, sorry for seeming to selfishly hijack the post. Just giving a real life example of expensing exact amounts as incurred ;-)

[Sockpuppet]

Well it does and it doesnt.

Worst way = Clients books and pays for stuff directly for you

Better way = You bill client for expenses as they are incurred

Best way = its in your daily rate / total for the project

[Billy Pilgrim]

Most definitely camp b for me at the moment.

Option c is a bit tricky - since I do not know how often I will be travelling - sometimes work away 4 or 5 days per week - other times one or twice.

Best way for all parties involved is for my Ltd to pay for everything..then invoice them at month end...that way neither of us is significantly out of pocket

[SandyDown]

Having a daily rate plus expenses does not mean you are within the IR35, when working for a consultancy (as a contractor) this is the way they normally do it - have an accountant look at the contract to word in a way to be outside the IR35, and add the expenses to your invoice as a lump-sum, I never had a problem with having expenses paid separately.

[TheFaQQer]

Most definitely camp b for me at the moment.

Option c is a bit tricky - since I do not know how often I will be travelling - sometimes work away 4 or 5 days per week - other times one or twice.

Best way for all parties involved is for my Ltd to pay for everything..then invoice them at month end...that way neither of us is significantly out of pocket

I always factor in what I think I'll be spending - assuming that I'm away 4 nights a week. If I don't need to be away for that time, then I'm quids in; if I need to be there for longer then occasionally I lose out that week. If you're billing in hourly / bi-hourly rates, then this probably isn't something that you can really do too accurately though - I only bill by the day, unless it's a fixed price deal.

[thunderlizard]

It's fine to do it either way. If your customer has a preference then you can use it as a bargaining chip. Little to no IR35 relevance.