Reply to: Working overseas for 2 weeks

[diesel]

when i travelled overeseas client pays for flights. This is best way as if plans change its is client liability fo refund etc.
I usually pay the hotel when out there and meals etc. theny claim all this back via client expense form back home. I submit my expenses to agency plus VAT and then agent pays me direct.
Some contractors here claim expenses direct from client. But my argument is that i have no contract direct with client and best to keep all paper trail and show i am a business by doing this via agency.

[SueEllen]

Also understand northernladuk advice about the way to calculate the exchange rate based on what you actually paid in sterling. ie, if you expense something for $100 and it shows up on your credit card statement as £80 then you bill/claim for £80.

WHS

I would suggest you pop along to the moneysavingexpert website and see what credit cards and debit cards they recommend you use or more importantly stay away from using when you are abroad.

Some card companies make up their exchange rates so it's in your own interest to use the cards that don't do this particular if your limited ends up having to pay for things. In some cases it's better for you to use your personal cards and be reimbursed by your limited.

BTW Metrobank accounts can be open within 2 hours you just need to be able to get to a branch.

[Wanderer]

Question is client is payin for flights and accomodation.

What expense can MyCo (my limited company as a contractor) can claim...

OK so flights and hotel are sorted, that's great.

For other expenses like transport, meals, incidentals etc you should see what the client will allow you to claim. Most likely all of the expenses you could legally claim for through your company will be reimbursed by the client.

Remember, if you pass the expense on to the client to reimburse then you get 100% of the expense back. If you pay the expense out of your company's income then you get tax relief on it, ie about 20%-40% of the expense back and the rest comes out of your company profit (ie your pocket).

If there are expenses that the client will not reimburse then you can claim them through your company. The general test is any expense incurred "wholly and exclusively" for business purposes. Let's say that while you are there, you have some spare time so you go to a conference which is nothing to do with the client, you would claim these costs against your company rather than from the client.

Also understand northernladuk advice about the way to calculate the exchange rate based on what you actually paid in sterling. ie, if you expense something for $100 and it shows up on your credit card statement as £80 then you bill/claim for £80.

[SueEllen]

I think the link posted earlier is what you need to reference as its HMRC benchmark scale rates for working abroad. It even goes to city level in some cases where it is more expensive to stay in the city than other parts of the country.

I believe my umbrella is not doing me any favours by applying their UK overnight scale rates to 2 weeks work that I recently carried out in Amsterdam. They are using £26 when benchmark figures are 67 euros for each 24hr period (receited expenditure of course). When I questioned them it appears that they were not even aware of overseas benchmark scale rates so it's no as if they have to apply for dispensation. The rate is payable from the time your plane touches down in the foreign country and my umbrella is not alooing me to claim any food for the 8 hour journey it took from Glasgow to hotel in Amsterdam as they say I wasnt working that day.

Time to go limited then.

Then you can on the advice of your accountant claim the rates quoted, as your limited is then your employer. At the moment your umbrella is your employer and they can decide on what rates they want to use.

[Abbeyweb]

Question is client is payin for flights and accomodation.

What expense can MyCo (my limited company as a contractor) can claim...

I think the link posted earlier is what you need to reference as its HMRC benchmark scale rates for working abroad. It even goes to city level in some cases where it is more expensive to stay in the city than other parts of the country.

I believe my umbrella is not doing me any favours by applying their UK overnight scale rates to 2 weeks work that I recently carried out in Amsterdam. They are using £26 when benchmark figures are 67 euros for each 24hr period (receited expenditure of course). When I questioned them it appears that they were not even aware of overseas benchmark scale rates so it's no as if they have to apply for dispensation. The rate is payable from the time your plane touches down in the foreign country and my umbrella is not alooing me to claim any food for the 8 hour journey it took from Glasgow to hotel in Amsterdam as they say I wasnt working that day.

[decentguy]

If client pays for your flights then client can not claim as an expenses as you are not an employee.

Question is client is payin for flights and accomodation.

What expense can MyCo (my limited company as a contractor) can claim...

[NotAllThere]

If client pays for your flights then client can not claim as an expenses as you are not an employee.

erm.... nonsense.

[rmmc]

Any reason why client can't pay for flights and hotel directly?

If client pays for your flights then client can not claim as an expenses as you are not an employee.

[Craig@Clarity]

Your accountant maybe talking about the benchmark scale rates found here perhaps? Employment income: scale rate expenses payments: accommodation and subsistence payments to employees travelling outside the UK and HM Revenue & Customs: Revenue & Customs Brief 24/09

Personally, I would suggest claiming for the actual cost of your food and travel as it could be more than the advised rate and you'll have supporting evidence in the form of valid receipts for your expenditure

[decentguy]

Thanks guys

Just wanted to clarify that client is buying ticket for me and booking accomodation. So no need for me to claim anything back...

Just wanted to know more about food, travel from hotel to office etc.

I just rang my accountant and he says I can claim £25 per day subsitence whilst working overseas for short period of time.

[Craig@Clarity]

Any reason why client can't pay for flights and hotel directly?

In my opinion, it's more like a procedure you'd follow if you were employed by the client (permie) rather than "in business on your own account".

[northernladuk]

Any reason why client can't pay for flights and hotel directly?

Good point. They are needed to do your job just as your laptop, desk which they also pay for etc so can't see why there is a problem client providing you with a flight just like your other bits. It becomes a problem if you have to use some kind of expenses system just as the permies do and have no choice. I believe thats the rule. Better to pay yourself and invoice back if it isn't too inconvenient though.

Can't get your airline and hotel points plus cash back on cards if your client buys it as well

[northernladuk]

Hi

I am currently contracting in London and my client wants me to train a new overseas team for couple of weeks.

My client is willing to pay for flights and accomodation for this trip

However, I was wondering what I can claim from MyCo. for this trip. Subsistence, food, travel to-from hotel etc

Thanks in advance

I presume they are have agreed they will pay for all the above. I would ask though, some co's, even large ones have some ridiculous rules about overseas expenses whereas some have some pretty generous packages. Find out exactly what they are willing to cover before hand. When you are out there, pay for it yourself, keep receipts and invoice it back to the client providing them with a COPY of the receipts as evidence.

Things to be mindful of (and sorry if you already know this but...)
Exchange rates. You may pay $40 cash for a taxi but think about what the dollars cost you when you convert back. If you bought them at the airport the rate will be terrible and just using converters can be skewed as they are using market value that you could never really get. With a lot of cash purchases you can get very out of pocket.

Credit cards. Some cards charge a percentage for each transaction, some will just use a terrible exchange rate when changing to GBP. Make sure you claim what it cost you, not what the currency translator uses.

Again sorry if you are aware of these but people do fall foul of these and many other things.

[Fred Bloggs]

Any reason why client can't pay for flights and hotel directly?

None at all.

[jmo21]

Assuming it is a temporary location you are going to work at, you should pay for your travel (from home, including flights), subsistence and accommodation from your company and then recharge it back to your client.

Any reason why client can't pay for flights and hotel directly?