Inside IR35 contracts with 2/3 days on site for travelling contractors

[northernladuk]

I thought the point was that a typical Infosys employee can claim expenses, but a typical contractor can’t. Otherwise what is the point of IR35?

You are comparing apples and pears. IR35 is a tax status, it's nothing to do with employment. And inside contractor maybe tax 'like' and employee but that's it. There are no benefits or rights crossover. The infosys person can claim expenses because of the policy of his employer, an inside contractor does not have an employer. Well actually they do and it's the umbrella who says no expenses.

Just becase an employee can do something it doesn't mean someone inside can. Got to be very clear on the differences to understand the nuances.

[hugebrain]

Just becase an employee can do something it doesn't mean someone inside can.

That’s exactly what I was pointing out

As I understand it, if I am working on an assignment at a client and an Infosys guy is working on the next desk. He will be able to pay his hotel and travel expenses from pre-tax money and I won’t. Meaning that my expenses are three or four times higher than his.

Which is why the consultancies paid for IR35 in the first place.

[northernladuk]

That’s exactly what I was pointing out

As I understand it, if I am working on an assignment at a client and an Infosys guy is working on the next desk. He will be able to pay his hotel and travel expenses from pre-tax money and I won’t. Meaning that my expenses are three or four times higher than his.

Which is why the consultancies paid for IR35 in the first place.

Because he is an employee and you aren't. You quote a line to help your argument but completely ignore the key point. An infosys employee on a fix price contract couldn't be any more different than a contractor inside IR35. You clearly have no idea how infosys the company operate and are just focusing on irrelevant points to try make a case.

[hugebrain]

Because he is an employee and you aren't. You quote a line to help your argument but completely ignore the key point. An infosys employee on a fix price contract couldn't be any more different than a contractor inside IR35. You clearly have no idea how infosys the company operate and are just focusing on irrelevant points to try make a case.

I’ve had the pleasure of working alongside Infosys for many years and know exactly how they operate.

They have two advantages - their employees hate Indians and are desperate to get away from them so will work for very little - they can spend on travel etc. before tax.

There’s not much I can do about the first advantage. I’ve always taken outside IR 35 contracts to negate the second.

I’m pleased you think I couldn’t be any more different to the Infosys guys. Nicest thing you have ever said!

[fatJock]

One thing I never see in these threads - have you not negotiated to make your expenses rechargeable? It wouldn't matter that you can't claim them from your Ltd then.

You do know you can negotiate, right?

What I have done in the one inside role I had. Contract amended to state that base was home address - all travel to sites other than home could be expensed (as client agreed policy) via agency and umbrella. Same with any required overnight stays (weren’t any for me but there were for others).

These I believe fall under allowances for legitimate chargeable expenses but of course limit those that could be claimed operating outside.