Contract that runs for over 2 years

[boredsenseless]

Yes that is right assuming that the costs are incurred for business use and its not just a jolly!

Alan

I wouldn't be staying in a hotel in this hell-hole of a backwater for a jolly, I think I can convinve anyone of that

[Nixon Williams]

Alan,

So if I understand you correctly.

As far as the company is concerned there is no change if a hotel costs £100, it goes in as an expense and £100 comes of the year end profit and CT is paid as normal.

But I on the other hand would have to pay 40% of cost as a BIK

Am I correct in this?

I think if this is the case I'll just up my day figures that I use to quote for fixed price work by £75 to cover the BIK

Yes that is right assuming that the costs are incurred for business use and its not just a jolly!

Alan

[boredsenseless]

You can do this but the company will not have to pay Corporation Tax on the costs. If you exceed the 24 months then you will be liable for personal tax on the costs. These will be reported on the P11d and you will pay the tax on your tax return.

I hope this helps.

Alan

Alan,

So if I understand you correctly.

As far as the company is concerned there is no change if a hotel costs £100, it goes in as an expense and £100 comes of the year end profit and CT is paid as normal.

But I on the other hand would have to pay 40% of cost as a BIK

Am I correct in this?

I think if this is the case I'll just up my day figures that I use to quote for fixed price work by £75 to cover the BIK

[Nixon Williams]

I have a similar question. If I run over the 2 years can the company still pay for travel and hotels? So long as the company still pays the corporation tax on it?

You can do this but the company will not have to pay Corporation Tax on the costs. If you exceed the 24 months then you will be liable for personal tax on the costs. These will be reported on the P11d and you will pay the tax on your tax return.

I hope this helps.

Alan

[tim123]

I have a similar question. If I run over the 2 years can the company still pay for travel and hotels? So long as the company still pays the corporation tax on it?

yes, but you'll have to pay IT on the personal BIK.

tim

[boredsenseless]

I have a similar question. If I run over the 2 years can the company still pay for travel and hotels? So long as the company still pays the corporation tax on it?

[DaveB]

If you can legitimately split your time between the two then you may be able to claim some expenses still. The max amount of time you can spend on one site after 2 years and still claim expenses is 40% of your time. i.e no more than 2 days week. If you can do 2 days on one site, 2 days on the other and 1 day at home then you can claim the expenses still.

[Smudge67er]

Is there anyway around this?

Just over a year ago my contract was moved from Alexander Mann, to Hays IT. Is this classed as a different contract, as I had to sign a new one?

I also support another site (around 80 miles away), does this make a difference?

Smudge

[Pondlife]

You can no longer claim expenses, mileage etc and treat is as a temp working location. Apart from that nothing changes.

[Smudge67er]

Hi,

Just joined the forum.

I've been contracting on a site for the MoD, and they've just informed me that it's going being extended again

The only problem is that I will now have been on site here for over 2 years, what legal problems does this bring with it?

Any help appreciated.

Smudge