Reply to: Question about 2 year limit on expenses

[css_jay99]

Based on lisa's calculation Surrey seems to be ok.

Perhaps this will help - http://www.nixonwilliams.com/images/...nth%20Rule.pdf

page does not exists,

does this mean I have to pay this money back to company?!

css_jay99

[malvolio]

I was giving a different example on how 'Contractors do Claim expenses' from clients and do Not fall within IR35

But not expressing yourself very clearly. Let's try and clarify things:

If you buy a ticket to get to work and claim it back, from YourCo or the client, and you've blown the 24 month rule, it's a BIK.

If the client buys the ticket, no benefit so no BIK, 24 month rule or not. But if you are invoicing them for it, it's a BIK

And if the client is paying you personally, directly or otherwise, it is an IR35-caught pointer, since you weaken your IBOYA status. It may not be fatal, but who knows.

Same applies to food and accomodation of course.

BTW last I heard Tarbie was working for a certain publicly-owned UK bank, so it could be we're actually paying for him...

[tarbera]

Contractors do not claim expenses

Why would you need to claim back anything that is paid direct by the client?

You can claim them back if you paid for them. If the client paid you don't need to claim it. You are mixing situations up. Expenses in this thread is about the OP paying it and getting it back from the client. This is completely different from your example where the client pays it direct.

I was giving a different example on how 'Contractors do Claim expenses' from clients and do Not fall within IR35

[northernladuk]

ohh Dear, seems like Its " not expenses moron" and Mav says Yes it's a 'BIK' lol are you 2 in the same room.?



moving on, Say my contract says I can claim back all my flights + hotel from client 4 grand a month in total I only get paid say 3 grand a month in your mind I can''t claim my flights back from the client (money changing hands this time)??

wisdom please

Why would you need to claim back anything that is paid direct by the client?

You can claim them back if you paid for them. If the client paid you don't need to claim it. You are mixing situations up. Expenses in this thread is about the OP paying it and getting it back from the client. This is completely different from your example where the client pays it direct.

[tarbera]

oh dear

That is not expenses moron. That is something delivered to you to be able to do your job like your laptop. No money changes hands.

If you you paid for it and used the clients expenses system to get the value of your flight back then you are raising the IR 35 flag.

ohh Dear, seems like Its " not expenses moron" and Mav says Yes it's a 'BIK' lol are you 2 in the same room.?



moving on, Say my contract says I can claim back all my flights + hotel from client 4 grand a month in total I only get paid say 3 grand a month in your mind I can''t claim my flights back from the client (money changing hands this time)??

wisdom please

[northernladuk]

Flying from Amsterdam to Glasgow this afternoon, Client paid for my flight directly, should I pay them back

Is this allowed or not .?

That is not expenses moron. That is something delivered to you to be able to do your job like your laptop. No money changes hands.

If you you paid for it and used the clients expenses system to get the value of your flight back then you are raising the IR 35 flag.

[malvolio]

Flying from Amsterdam to Glasgow this afternoon, Client paid for my flight directly, should I pay them back

Is this allowed or not .?

Of course it's allowed, but it's a BIK if you know you're there over two years regardess of how you source it.

[tarbera]

indeed

<sigh> I just don't have the energy.. WSES

Flying from Amsterdam to Glasgow this afternoon, Client paid for my flight directly, should I pay them back

Is this allowed or not .?

[northernladuk]

Red Flag to IR35 on client paying expenses - you will find this is an IR35 urban myth.

What nonsence to say Contractors do not claim expenses from there clients

<sigh> I just don't have the energy.. WSES

[Ruprect]

Ruprect
I was under the impression that it applies to subsistance as well as travel expenses, or have I got this wrong ?

Check the HMRC website, Travel expenses: travel for necessary attendance: the 24 month rule: how to find out the expected period of time at a workplace it's only travel. Out of interest, what "subsistence" are you claiming too?

[SueEllen]

Red Flag to IR35 on client paying expenses - you will find this is an IR35 urban myth.

What nonsence to say Contractors do not claim expenses from there clients

While you can claim expenses from your clients that are properly invoiced , and you can't claim as a way to change the income you receive from your only long term client. People aren't stupid and that includes HMRC.

[tarbera]

Red Flag to IR35 on client paying expenses

You shouldn't like it. It's rubbish. Check Mals post below it and read it with a hugh <sarcasm> tag in front of it. But he is right. Contractors do not claim expenses, permies do. If you start doing this you will raise a huge flag for IR35 which I am sure you have read up on.

Red Flag to IR35 on client paying expenses - you will find this is an IR35 urban myth.

What nonsence to say Contractors do not claim expenses from there clients

[LisaContractorUmbrella]

IR35 won't apply if you're working through an umbrella, but you may have to be aware of the upcoming Agency Workers Regulations.

Lisa can advise on what travel expenses you can claim through a brolly, that's her field of expertise

Thanks Clare You are right - IR35 does become irrelevant because all brolly users are automatically paid via PAYE. With regard to travel expenses, that will depend on individual circumstances - I would mention that we have a guide to expenses on our website but that would get me in trouble with mods

[Clare@InTouch]

Thanks Lisa.

Does it make any difference if you're working through an umbrella company, as in that case you are an employee (of the umbrella company) and you are treated as such for tax and NI, albeit that you pay the employer NI as well.

IR35 won't apply if you're working through an umbrella, but you may have to be aware of the upcoming Agency Workers Regulations.

Lisa can advise on what travel expenses you can claim through a brolly, that's her field of expertise

[dts256]

Thanks Lisa.

Does it make any difference if you're working through an umbrella company, as in that case you are an employee (of the umbrella company) and you are treated as such for tax and NI, albeit that you pay the employer NI as well.