Reply to: New to Contracting - Advice Appreciated

[jamesbrown]

although I believe you need an agreement with HMRC to use these

Yes, a dispensation is needed. Some guidance here, including for "One man service companies/Personal service companies"

EIM05230 - Employment income: scale rate expenses: subsistence expenses: advisory benchmark scale rate payments
EIM30059 - Dispensations: checking and authorisation of expenses payments

[tarbera]

lunch and a couple of coffees is £25 min in london a day

Exactly - we have folks here who do the x1 coffee a day and lunch. Seriously if that amount of faff is only going to amount to a couple of hundred pounds you have bigger budget issues

another £75 for dinner, thats a few quid to claim

[Dallas]

Non-Receipted expenses for small purchases of up to £5 a day are quite in order, provided you are working away from home overnight or are at work for an extended day of 14 hours or more. At the end of the year, assuming you work full time and never have a day off, that would make a whole £220 you've saved yourself...

Don't spend it all at once...

Exactly - we have folks here who do the x1 coffee a day and lunch. Seriously if that amount of faff is only going to amount to a couple of hundred pounds you have bigger budget issues

[TheCyclingProgrammer]

It's not quite as clear cut as that though is it: https://www.gov.uk/employment-status...yed-contractor

If you're operating through a Ltd then there is no dispute over whether you are self employed or not - you clearly aren't. The page above is only relevant to somebody who works as a sole trader (but HMRC may deem you an employee of your client in some circumstances).

[LisaContractorUmbrella]

As I've mentioned to you before Lisa, the BIM applies to the self employed, not employees. It's not relevant here and I don't know why you persist in quoting the. The EIM is why you need to read. The rules for employees and the self employed are different.

OP: you certainly claim the cost of meals (including lunch) under travel and subsistence rules as long as it's an extra expense incurred in the course of travel to a temporary workplace. You'll want to learn about the 24 month rule in relation to this. Lots of info on here if you search. You will obviously need to keep receipts to back up your claim.

There are also fixed rate allowances for overnight incidentals and scale rate payments (although I believe you need an agreement with HMRC to use these. They are of more use to umbrellas as it's less hassle for them).

It's not quite as clear cut as that though is it: https://www.gov.uk/employment-status...yed-contractor

[TheCyclingProgrammer]

They are probably relying on scale rates which can be paid by employers to employees - it could be argued that as a single person Ltd Co you are both employer and employee EIM05231 - Employment income: scale rate expenses: subsistence expenses: table of benchmark scale rates

There is no argument! If you operate through a Ltd then it's the employee rules that apply.

[malvolio]

Thanks, what about eating on client site? I've always claimed a reasonable amount, but have known other contractors who claim £5 per day regardless.

qh

Non-Receipted expenses for small purchases of up to £5 a day are quite in order, provided you are working away from home overnight or are at work for an extended day of 14 hours or more. At the end of the year, assuming you work full time and never have a day off, that would make a whole £220 you've saved yourself...

Don't spend it all at once...

[TheCyclingProgrammer]

BIM47705 - Measuring the profits (specific rules and practices) - receipts and deductions: specific deductions - travel and subsistence: expenditure on meals and accommodation

As I've mentioned to you before Lisa, the BIM applies to the self employed, not employees. It's not relevant here and I don't know why you persist in quoting the. The EIM is why you need to read. The rules for employees and the self employed are different.

OP: you certainly claim the cost of meals (including lunch) under travel and subsistence rules as long as it's an extra expense incurred in the course of travel to a temporary workplace. You'll want to learn about the 24 month rule in relation to this. Lots of info on here if you search. You will obviously need to keep receipts to back up your claim.

There are also fixed rate allowances for overnight incidentals and scale rate payments (although I believe you need an agreement with HMRC to use these. They are of more use to umbrellas as it's less hassle for them).

[DirtyDog]

You need to make sure you stick to the work as described in your original contract. Doing a bit of extra work for Y could be seen as direction and control which is major pointer to being inside. Make sure you have understood your work schedule and you stick to it. Extra work requires more schedules of work. If it gets the point that X is just giving you what he wants to then even extra schedules won't save you.

I'd also add that if Y are asking for you personally, then the chances of you being able to rely on a substitution clause disappear. That could make an IR35 defence a bit harder.

[LisaContractorUmbrella]

Thanks, what about eating on client site? I've always claimed a reasonable amount, but have known other contractors who claim £5 per day regardless.

qh

They are probably relying on scale rates which can be paid by employers to employees - it could be argued that as a single person Ltd Co you are both employer and employee EIM05231 - Employment income: scale rate expenses: subsistence expenses: table of benchmark scale rates

[quackhandle]

BIM47705 - Measuring the profits (specific rules and practices) - receipts and deductions: specific deductions - travel and subsistence: expenditure on meals and accommodation

Thanks, what about eating on client site? I've always claimed a reasonable amount, but have known other contractors who claim £5 per day regardless.

qh

[LisaContractorUmbrella]

Really?

qh

BIM47705 - Measuring the profits (specific rules and practices) - receipts and deductions: specific deductions - travel and subsistence: expenditure on meals and accommodation

[quackhandle]

Is your contract between your company and X

If so Y is irrelevant

Only bother claiming lunch if you are working away overnight, travel exps are ok 45p a mile for a car for the first 10000 miles then 25p a mile thereafter, or the actual cost of a train/plane ticket

Get a company debit/credit card and expense it through that to make it easier to keep track of

Really?

qh

[northernladuk]

You need to make sure you stick to the work as described in your original contract. Doing a bit of extra work for Y could be seen as direction and control which is major pointer to being inside. Make sure you have understood your work schedule and you stick to it. Extra work requires more schedules of work. If it gets the point that X is just giving you what he wants to then even extra schedules won't save you.

Oyster cards... - https://www.google.co.uk/search?q=oy...ntractoruk.com

[MotionError]

Always worries me when people say they have understood their IR35 situation and then use the wrong terminology. There is no IR35 'Breach'. You are inside or outside.



So X is a subcontractor to Y? Your terminology is very confusing as you say you ARE invoicing X but Y WANT to you to do something. So until you start doing stuff for Y what are you currently invoicing X for?

Company Y is a friend of company X, Y approached X to ask for me since they saw my work. I am now working for Y but invoicing X, make sense?

Read the newbies guides to the right, particularly the one titled Contractor Expenses. Your accountant should have detailed guides about all this as well.

Do you have any suggestions of how an Oyster card travelcard could be put through my company as an expense? It lasts 7 days but obviously I cannot count weekends. What is the way around this?

Just make sure you read your contract carefully or negotiate it so there are no problems doing other bits of work.

see quoted