Travel Expenses for contractors

[E11esar]

Hi there.

I am getting a lot of conflicting information regarding travel expenses while contracting.

If I am travelling by train (return) from Bristol to London to my respective contracted place of work, can I claim these travel expenses? There will be no additional travel incurred during my normal working day.

I am planning to be administered under an umbrella company.

Thank you



Further reading note from Admin: Contractor Travel Expenses

[kirk]

you certainly can ! any expenses incurred wholly in relation to the business can be claimed.

[reddeagle]

you certainly can ! any expenses incurred wholly in relation to the business can be claimed.

]


I will be in same situation, what does this actually mean financially that one can expense travel?

[Gonzo]

Sigh. I have no idea how this applies to Umbrella companies, so there may be more considerations.

Do not consider travelling to a client site as "travelling to work". It is travelling to a temporary work place as opposed to your regular work place. There are detailed examples (note that in the usual HMRC unhelpful way there are not detailed rules) on the HMRC website of what is involved here.

[VectraMan]

]I will be in same situation, what does this actually mean financially that one can expense travel?

It means you get paid that money back tax free, but that comes out of your income. In the final analysis, what this means is if you're paying 40% tax, you pay for 60% of the expense.

[reddeagle]

It means you get paid that money back tax free, but that comes out of your income. In the final analysis, what this means is if you're paying 40% tax, you pay for 60% of the expense.

Cheers, i think i understand.
i best keep all receipts.

[G8_Summit]

Cheers, i think i understand.
i best keep all receipts.

On this subject, is rail fare VATable ?? Receipts I get for my train tickets do not have VAT mentioned ???

[Ardesco]

No VAT on train tickets. There is on parking in thier car parks though!!!

[richard-af]

No VAT on train tickets. There is on parking in thier car parks though!!!

I am not sure, but isn't there some VAT added if you pay by credit card?

[Ardesco]

You can't change VAT status depending on payment method. It is either VATable or not.