Reply to: Travelling expenses

[jmo21]

Why wouldn't it? Its a personal allowance, not a per-business allowance. And I appreciate that the logic makes no sense.

It actually makes perfect sense to me.

[jmo21]

Thanks. .. 20% is quite a lot on that amount. ... is there another option then that I'm not seeing?

You think 20% is a lot, but you want another option?
Can you rephrase your question?

To make it clearer, the money in your company account has been earned by, and is owned by your company.

But effectively, you are going to pay it out as salary and divvies to yourself (and maybe your wife as a shareholder if you are set up that way), as well as pay corp tax on the profit.

So when you "claim" expenses, it is coming out of money you would have paid out to yourself anyway. By having your company reimburse you the employee the whole travel amount, you then will not have to pay 20% corporation tax on that amount had it stayed in your company.

So your not getting a free £1000 for example, you are only saving 20% of that, £200 overall.

And you don't receive that £200 from anywhere, either to you personally, or to the company, your corp tax bill is just £200 less.

[Boney M]

Any response to my post OP?

[TykeMerc]

Thanks for the replies. So, for the avoidance of any doubt on my part am I ok to claim for the full expenses listed below? (So long as I am mindful of the 24 month rule).

The fact that these would be the same cost each month wouldn't present any issues?

Train - £550
Car Park - £80
Mileage - £150
Oyster - £100

Not an issue at all. If challenged you can produce receipts and you can justify the travelling for business reasons.

[Alan @ BroomeAffinity]

Thanks for the replies. So, for the avoidance of any doubt on my part am I ok to claim for the full expenses listed below? (So long as I am mindful of the 24 month rule).

The fact that these would be the same cost each month wouldn't present any issues?

Train - £550
Car Park - £80
Mileage - £150
Oyster - £100

No problems.

[tails007]

Thanks for the replies. So, for the avoidance of any doubt on my part am I ok to claim for the full expenses listed below? (So long as I am mindful of the 24 month rule).

The fact that these would be the same cost each month wouldn't present any issues?

Train - £550
Car Park - £80
Mileage - £150
Oyster - £100

[v8gaz]

This is a new one on me...?

Why wouldn't it? Its a personal allowance, not a per-business allowance. And I appreciate that the logic makes no sense.

[PerfectStorm]

And remember the 24 month rule doesn't just apply to your contracting career so if your permie job beforehand was in the same (or similar) location then you need to factor this in.

This is a new one on me...?

[Boney M]

Surely your monthly season ticket with added zones 1-6 would be far cheaper than the £100 PAYG Oyster? Mine only comes in at en extra £59 and my season is £681.60 without the add on

[TheCyclingProgrammer]

Thanks all. .Appreciate the help. I'm familiar with the 24 month rule but not clear on what constitutes regular. .. 3/5 days a week at the same office? Is there a hard and fast rule?

24 month rule kicks in if you spend more than 40% of your time there (evaluated over the previous 24 months on average). So yes, 3/5 days would normally constitute regular.

[tails007]

Thanks all. .Appreciate the help. I'm familiar with the 24 month rule but not clear on what constitutes regular. .. 3/5 days a week at the same office? Is there a hard and fast rule?

[tails007]

Of course you can, but as others have said, familiarise yourself with the 24 month rule.

Also, re: 'claim', just in case you aren't aware, you only effectively save 20% by putting it through as an expense.

Thanks. .. 20% is quite a lot on that amount. ... is there another option then that I'm not seeing?

[TheCyclingProgrammer]

Also bear in mind that the 24 month rule is based on more than just location - the length and cost of journey has to be taken into account too.

So if you lived near East London, your commute to an office in the City might be substantially different to one you might make to one on the West side of London, and so would be counted as a new location. However as you live hours away from London such that the the significant part of your journey is the 2 hour trip into London and working in different parts of London has little substantial effect on your journey, then the whole of London could be treated as the same location.

In other words, if all of your contracts are in central London and your journey remains largely the same for each client, the 24 month rule is very likely to bite.

[Alan @ BroomeAffinity]

And remember the 24 month rule doesn't just apply to your contracting career so if your permie job beforehand was in the same (or similar) location then you need to factor this in.

[jmo21]

Does anyone have a feeling as to whether or not I can claim for some or all of these expenses?

Of course you can, but as others have said, familiarise yourself with the 24 month rule.

Also, re: 'claim', just in case you aren't aware, you only effectively save 20% by putting it through as an expense.