Reply to: Inside IR35, specific question about imminent changes to T&S

[mudskipper]

Bear in mind how the legislative process works w/r to your desire for something "final". I believe this FB hasn't even passed through Second Reading yet.

Timescales shown here

Finance (No.2) Bill 2015-16 — UK Parliament

[Glencky]

Fair point, JamesBrown! and I've implemented enough reg change that I should know that already!

[jamesbrown]

AFAIK Dublin T&S would be allowed anyway given that it's overseas.

Good point, but IIRC, the consultation was ambiguous about internal travel in that case (i.e. to the port/airport). Anyway, if it isn't H2W travel, it isn't in scope.

[Pondlife]

AFAIK Dublin T&S would be allowed anyway given that it's overseas.

[northernladuk]

BTW, for those legislative geeks, the T&S legislation was voted through as part of the Budget Resolutions late on Tuesday. The vote was forced by the SNP and, of the largest parties, only the SNP voted against the T&S legislation (307 vs. 62).

That excited me a little.

[jamesbrown]

BTW, for those legislative geeks, the T&S legislation was voted through as part of the Budget Resolutions late on Tuesday. The vote was forced by the SNP and, of the largest parties, only the SNP voted against the T&S legislation (307 vs. 62).

[jamesbrown]

Hahaha! thanks, Mudskipper - I can cope with not easy reading, I just didn't realise this would be incorporated into the final Finance Bill, I assumed there would be guidance separately. I'll have a trawl. Fun, fun, fun!

Bear in mind how the legislative process works w/r to your desire for something "final". I believe this FB hasn't even passed through Second Reading yet.

[Glencky]

Hahaha! thanks, Mudskipper - I can cope with not easy reading, I just didn't realise this would be incorporated into the final Finance Bill, I assumed there would be guidance separately. I'll have a trawl. Fun, fun, fun!

[mudskipper]

Thanks, all - OK probably a bit pointless trying to edit down the original post given so many replies already so fast!

Glad to hear others concurring with my view.

Does anyone know if that draft guidance got made 'final'?? From a reasonableness perspective it should be perfectly reasonable that a London-based worker should get travelling expenses for travel to Dublin as yes, the permies would. But reasonableness is not always in line with regulation so I find the example of Jim to be very helpful, and I'd like to see it made 'final' rather than draft!

EDIT: and yes, I will indeed check with my accountant - but I like to inform myself and asking on here is part of that.

http://forums.contractoruk.com/futur...ll-2016-a.html

But it's not easy reading

[Glencky]

Thanks, all - OK probably a bit pointless trying to edit down the original post given so many replies already so fast!

Glad to hear others concurring with my view.

Does anyone know if that draft guidance got made 'final'?? From a reasonableness perspective it should be perfectly reasonable that a London-based worker should get travelling expenses for travel to Dublin as yes, the permies would. But reasonableness is not always in line with regulation so I find the example of Jim to be very helpful, and I'd like to see it made 'final' rather than draft!

EDIT: and yes, I will indeed check with my accountant - but I like to inform myself and asking on here is part of that.

[jamesbrown]

I concur. Your Dublin T&S would be allowable for tax relief (via your SATR), because this would not be defined as H2W travel. By way of analogy, a regular employee could claim tax relief on this travel, and that is the yardstick for any assessment of what is claimable under the new rules.

[Ketto]

From my understanding you can continue claiming the T&S to Dublin direct from the client as per your contract. If you didn’t have this provision in your contract you could still put the Dublin T&S through your Ltd. company as this is a temporary workplace seeing as you spend <40% of your time there. Check with your accountant though, they should be up to speed on this stuff.

[mudskipper]

I agree with your view.

You can claim T&S for your trips to Dublin, if your base office, and the one you spend most time at is London. Assuming the permie employees do the same, I can't imagine there would be any challenge.

[Glencky]

Yes, I am - and sorry, I didn't realise quite how long it had got. I'll go back and try and fix it.

I personally claim T&S from MyCo for all expenses for T&S away from MyCo registered office (my home).

I invoice the client only for the non-London expenses.

Currently all of those T&S expenses I claim from MyCo (Dublin AND London) are allowable business expenses, an allowable deduction in the IR35 calculation and do not attract tax for me personally. I know this will change going forward, but I think because of my working pattern it will be only the London ones that are now excluded.

[northernladuk]

Blimey.. How long. Anyway of cutting this down so it's easier to understand?

You are invoicing them for Dublin and claiming it from the company?