Inside IR35 - claiming expenses for travel and hotels

[InnyOuty]

I have a Ltd company and have been outside IR35 for 7+ years.

There's a strong chance that my current contract will fall inside IR35.

I've seen the calculators to work out the take home on my daily rate, but what I'd like to know is how I continue to claim for expenses incurred for client related tasks - eg. hotels, venue hire, train fares to sites (not my daily base) to deliver workshops, attend meetings, etc. How and where do I claim these from?

Also, who pays me when I go inside IR35? Right now I complete a weekly timesheet and get paid my daily rate on a weekly basis. I then pay myself once a month - calculating my own taxes, setting aside Corp Tax, VAT, etc. Will the company who currently pays me now just continue to pay me, but at a reduced rate?

[ladymuck]

You won't be able to claim any expenses if the client deems you inside.

Have a skim through the stickies for more info.

You will either be paid by the client, on their payroll, or the agency, on their payroll, or an umbrella. It depends on the client and what arrangements they have made / require.

[northernladuk]

Check the first timers guides to the right.

[realaledrinker]

You won't be able to claim any expenses if the client deems you inside.

Hang on, if a permie employed in central Manchester visits the Sheffield office on business related matters, he/she can claim travelling expenses upto the HMRC limit of 45p/,mile so why not?

[wattaj]

Hang on, if a permie employed in central Manchester visits the Sheffield office on business related matters, he/she can claim travelling expenses upto the HMRC limit of 45p/,mile so why not?

This is a different situation. Ask if one's umbrella or PAYE employer will allow expenses to be claimed as they would for any other employee. Expenses cannot be claimed via one's limited company for roles determined "inside IR35" as one is deemed to not be working for that company.

[wattaj]

I have a Ltd company and have been outside IR35 for 7+ years.

7 years. And yet this is all a mystery to you?

[Manic]

Hang on, if a permie employed in central Manchester visits the Sheffield office on business related matters, he/she can claim travelling expenses upto the HMRC limit of 45p/,mile so why not?

This is true, but this is over and above salary. The answer therefore lies in the contract, is it Day rate + expenses or just Day rate.

[Peoplesoft bloke]

but what I'd like to know is how I continue to claim for expenses incurred for client related tasks - eg. hotels, venue hire, train fares to sites (not my daily base) to deliver workshops, attend meetings, etc. How and where do I claim these from??

You'll be paying these from your own pocket in future.

[madame SasGuru]

You'll be paying these from your own pocket in future.

None commuting expenses that are paid for by the client will still be claimable expenses.

Your expensive train fare to the client’s base office in London / Manchester and 3 nights hotel stay near said office won’t be however.

[cojak]

This was a standard question to ask the agent when I first started contracting.

But I haven’t had a contract like that since 2003; I suspect that they’ll come back into fashion in the future.