Why we MUST ditch our lazy attitude to finding work through agents and agencies

[Contreras]

It may have been said already. I got 10 pages in and didn't see it. But why not negotiate a contract where T&E is part of the contract. That way you push the T&E onto the client. I do this with my contractors now. Any expenses they accrue I pay them back.

I think it remains to be seen whether or not this would be allowed or seen as a 'loophole'.

As it stands currently we have to declare travel expenses on P11D and claim back via personal SA to cancel out the tax. What a lot of people don't realise is that technically (HMRC rules) the expenses must be declared on P11D regardless of whether paid out-of-pocket and reclaimed, paid directly by YourCo, or paid directly by the client. In other words it's still regarded as a benefit.

Depending upon how the new rules get implemented/enforced, your contractors could potentially be worse off (it could be treated as BiK, with tax and NICs to pay). At the moment P11D rules are often overlooked, being a nil-sum game it's a minor technicality that HMRC don't seem to care about - that will change if there is tax to be had.

[Martin Scroatman]

It may have been said already. I got 10 pages in and didn't see it. But why not negotiate a contract where T&E is part of the contract. That way you push the T&E onto the client. I do this with my contractors now. Any expenses they accrue I pay them back.

Because it will be taxed as a benefit in kind.

A lose lose situation if I've ever seen one.

[EternalOptimist]

I run a ltd because I was forced to. The only way I could get contract work was via an agency using a ltd. Which means I use an accountant, indemnity , VAT FRS, etc etc.

Over the years I have had to adapt and I will adapt to this as well. The key fixed points are
1. minimise aggro for the client
2. costs will go up, particularly for staying away
3. SDC will be certain, but then longer contracts are back on the agenda
4. Agencies practices might change and not for the better

Seems to me that I will be going for longer contracts, insisting on a 3 or 4 day week with 10 - 12 hour days, pushing hard for WFH, pushing harder for direct

[suityou01]

I shall not worry while we have great minds like MarillionFan on the case.

[centurian]

I run a ltd because I was forced to. The only way I could get contract work was via an agency using a ltd. Which means I use an accountant, indemnity , VAT FRS, etc etc.

So they wouldn't even let you go through a PAYE umbrella - surprised agencies are that fussy. Heard that some agencies got touchy about certain offshore schemes masquerading as umbrellas, but thought most were more than happy to allow PAYE umbrella's

[MarillionFan]

Because it will be taxed as a benefit in kind.

A lose lose situation if I've ever seen one.

I'm not sure you're right. I spend around 30k in T&E every year via my company. It is not a BIK its expenses for doing business and it certainly does not appear on my SA. As a contractor T&E also did not appear on my SA (post further above). Consultancy works in the same way. There is no BIK.

If companies > 3 employees can claim expenses then it makes sense you can push legit expenses back on to the client and thee is no BIK

Can one of our learned accounts chip in please?

[MarillionFan]

I shall not worry while we have great minds like MarillionFan on the case.

I look forward to your posts about how you keep failing to get through a permie inteview

[mudskipper]

I'm not sure you're right. I spend around 30k in T&E every year via my company. It is not a BIK its expenses for doing business and it certainly does not appear on my SA. As a contractor T&E also did not appear on my SA (post further above). Consultancy works in the same way. There is no BIK.

If companies > 3 employees can claim expenses then it makes sense you can push legit expenses back on to the client and thee is no BIK

Can one of our learned accounts chip in please?

Yes, but you're a permie. The proposal is to disallow expenses for those working through a brolly or PSC who are subject to SDC, with the premise (maybe - I'm still not convinced) that if you work via an agency, SDC is a given.

One of the primary objections is that this puts myCo at a tax disadvantage to bigCo, whose employees get tax free expenses.

[MarillionFan]

Yes, but you're a permie. The proposal is to disallow expenses for those working through a brolly or PSC who are subject to SDC, with the premise (maybe - I'm still not convinced) that if you work via an agency, SDC is a given.

One of the primary objections is that this puts myCo at a tax disadvantage to bigCo, whose employees get tax free expenses.

Yes. But you either claim your expenses via the Brolly or your own Ltd company. I'm talking about having the client pay your expenses.

For example we have contractors we fly to the U.S. They regularly rack up 5k in expenses per trip. It's not a BIK and even with the changes they won't get taxed on that.

If in your T&E with a client that your based at home and they must pay T&E to travel to their sites and you use their expensing processes it's not a BIK. Now in a number of cases where you're based at one site it won't work, but for those who do travel and stay away & also at more than one site I think it's a goer.

[mudskipper]

Yes. But you either claim your expenses via the Brolly or your own Ltd company. I'm talking about having the client pay your expenses.

For example we have contractors we fly to the U.S. They regularly rack up 5k in expenses per trip. It's not a BIK and even with the changes they won't get taxed on that.

If in your T&E with a client that your based at home and they must pay T&E to travel to their sites and you use their expensing processes it's not a BIK. Now in a number of cases where you're based at one site it won't work, but for those who do travel and stay away & also at more than one site I think it's a goer.

I think you're still OK for travel and subsistence to sites other than the regular site. It's the site that is the base for the duration of the "employment" that isn't going to be allowed.