Reply to: Travel expenses for new inside IR35 contract

[Lance]

yea but you need a proper VAT receipt to do it through expenses normally, which limits some of the deals you are able to take

only if claiming VAT back.
If not then just evidence that you've paid.
AirBNB don't charge VAT anyway (well they do but only on their fee).

When I have done cash deals I get email correspondence as evidence.

[CoolCat]

I'm from Yorkshire. It has always been painful to pay full price for anything so I'd negotiate hotels, do airbnb deals or whatever I could to get the best price regardless of tax status.

yea but you need a proper VAT receipt to do it through expenses normally, which limits some of the deals you are able to take

[CoolCat]

In a similar boat, just started an inside contract originally at £625p/d, client wanted me on site 3 days/week, it's 1.5hr away in busy traffic didn't fancy doing that commute on a daily basis. Said I will need to stay over 2 nights, negotiated a £50p/d uplift to £675p/d. Though an extra £250 p/w - half of that will go in tax, realisitically £125p/m. But many hotels charge £100p/n. Managed to find a hotel which is a bit of a dive normally £80p/n, negotiated a £50p/n rate. So just about break even. Asked quite a few hotels, most just give a blanket no, some do give a corporate rate which is still closer to the £100p/n mark.

Might be a whole new thread on how now to deal with accommodation - and being able to negotiate with hotels - with an inside IR35 contract (if it hasn't already been done.)

doing deals on hotels I would say I am fairly average, deals with hire car companies on the other hand I seem to excel at. often got rates that were far lower than the corporate rates negotiated by big companies.

[northernladuk]

The connection being, it is now more painful to have to pay for hotel/travel costs out of post tax income rather than being able to put it through as expenses through your ltd co. You could allow yourself to be more generous in your allowance when expensing through ltd co.

I'm from Yorkshire. It has always been painful to pay full price for anything so I'd negotiate hotels, do airbnb deals or whatever I could to get the best price regardless of tax status.

[gazelle]

What has negotiating with hotels and the tax status of your contract got to do with each other? You should be negotiating with hotels whatever your tax status is.

The connection being, it is now more painful to have to pay for hotel/travel costs out of post tax income rather than being able to put it through as expenses through your ltd co. You could allow yourself to be more generous in your allowance when expensing through ltd co.

[northernladuk]

Might be a whole new thread on how now to deal with accommodation - and being able to negotiate with hotels - with an inside IR35 contract (if it hasn't already been done.)

What has negotiating with hotels and the tax status of your contract got to do with each other? You should be negotiating with hotels whatever your tax status is.

[gazelle]

In a similar boat, just started an inside contract originally at £625p/d, client wanted me on site 3 days/week, it's 1.5hr away in busy traffic didn't fancy doing that commute on a daily basis. Said I will need to stay over 2 nights, negotiated a £50p/d uplift to £675p/d. Though an extra £250 p/w - half of that will go in tax, realisitically £125p/m. But many hotels charge £100p/n. Managed to find a hotel which is a bit of a dive normally £80p/n, negotiated a £50p/n rate. So just about break even. Asked quite a few hotels, most just give a blanket no, some do give a corporate rate which is still closer to the £100p/n mark.

Might be a whole new thread on how now to deal with accommodation - and being able to negotiate with hotels - with an inside IR35 contract (if it hasn't already been done.)

[CoolCat]

depends what kind of business you are working for.

in the case of consultancies I have had the deal that I am "home based" so any travel to any of their sites, or their customers, is expensed. but this deal was done before contract signature, as part of discussing the role with the hiring manager.

in the case of a more trad end user organisation then yep you have to suck it up, but try and increase the rates to cover.

[TheDude]

Hi everyone, just want to gauge opinion.

I'm about to sign a new contract and the client has asked me to be on site the first couple of days (approx 3 hrs away) to meet to team, collect laptop etc. Moving forward there may be very occasional meetings on site, though the role is remote.

Previously when I'd had these kinds of expenses I was working outside IR35 and would put the hotel/train through my ltd co. Inside IR35, how does this usually work? Would it be usual to ask the client to foot the bill? Or should I just suck it up?

New client, so don't want to start off on the wrong foot. Has anyone had any experience like this?

Many thanks as always
Lou

If we are only talking about a few days initially and maybe once a month ongoing then I would suck it up.

If your previous business model involved living somewhere cheap and expensing everything you could whilst accessing higher rates in London then you need a new business model.

[eek]

this discussion needs to be early, not just as they make an offer. Possibly too late now.
Although it sounds like you aren't bothered.

Well it needs to be made as they tell you that they want you in the office for x days.

Which actually isn't that unreasonable a request as a new starter asked to attend a location miles from home would likely get expenses for any hotel stays.

The problem here is that the expense rules for umbrellas are particularly vindictive and makes receiving any expenses paid for such a journey almost impossible to receive without tax being deducted.....

[Lance]

Thanks everyone - I meant more is it the done thing to ask the client to cover the travel/Hotel inside IR35. My Ltd Co would have nothing to do with it.

Even so looks like I've got to suck it up thanks all

this discussion needs to be early, not just as they make an offer. Possibly too late now.
Although it sounds like you aren't bothered.

[LouC]

Thanks everyone - I meant more is it the done thing to ask the client to cover the travel/Hotel inside IR35. My Ltd Co would have nothing to do with it.

Even so looks like I've got to suck it up thanks all

[malvolio]

Hi everyone, just want to gauge opinion.

I'm about to sign a new contract and the client has asked me to be on site the first couple of days (approx 3 hrs away) to meet to team, collect laptop etc. Moving forward there may be very occasional meetings on site, though the role is remote.

Previously when I'd had these kinds of expenses I was working outside IR35 and would put the hotel/train through my ltd co. Inside IR35, how does this usually work? Would it be usual to ask the client to foot the bill? Or should I just suck it up?

New client, so don't want to start off on the wrong foot. Has anyone had any experience like this?

Many thanks as always
Lou

Quick answer - You don't get expenses inside IR35. End of.

Slightly more complete answer - you can only claim expenses for a work visit to a site other than your normal place of work - usually the client office - just like any other employee. Such expenses normally have to be agreed with the client of course, and are reimbursed personally. In terms of your question, you do not qualify.

Forget being a contractor for such questions, pretend you are an employee. YourCo is no longer part of the equation.

[jamesbrown]

You're in the same situation as a regular employee, expenses come out of taxed income. You can ask for them to cover it, but I don't see why they would (any more than an employer would cover their employee's travel expenses), and it will be taxed as income.

[eek]

You suck it up and pay for it from your personal bank account / post tax income.