Credit Card from ClientCo

[clearedforlanding]

EDIT : Have you checked what they book you? Some company booking agents end up giving the clients a worse deal and booking it yourself can get much better flights at a better cost.

There is a reason behind this and HMRC bless them allow multinationals to do this.

All the big travel agencies, AMEX, Carlson Wagonlit et al. offer a scheme where companies are issued & pay for tickets from a higher fare bucket, but have pre-negotiated rates with the carriers. At the end of the year the client will receive a rebate based upon the the volume & difference in prices. Of course this rebate is paid to a subsidiary of the client in a tax friendly country, having already offset the ticket and VAT in the country of purchase.

Additionally there are advantages to letting the clientco book for you. If your ticket is from a higher bucket (fare basis) than the discounted ones available on from OTAs, there are advantages in frequent flyer miles, many OTA fare buckets are 0.5x and the bucket higher buckets are first in line when revenue management offers OpUps (free upgrates) let's look a BA:


Premier (invitation only elite level)
Gold and/or Full Fare paying passengers
Silver
oneworld Emerald
oneworld Sapphire
Blue
Other

As an example take a flight with 30 free seats in Economy & the following buckets

Y7 K5 M4 T6 E8

M, T & E are not going to offer you tier points, Y & K are, and if the airline has space in J & F and revenue management's yield calculations predicts they will not be sold they may decide to extend the K bucket (technically they open up another bucket, but let's not get too detailed) by a further 7 & proactively upgrade the fully paid Y ticket & gold card holders to the J (or WT+) cabin. This rolls up through J & F buckets.

Paid upgrades offered though Manage My Booking (MMB) follow a similar principle.

To maximise your chances, delay booking the flight (in this example keep an eye on BA.com) and as soon as the restricted & semi flex tickets no longer show, and use the usual high fare flights - Monday mornings, Friday evenings, do not stay over a Saturday etc.

Many corporate policies dictate economy only travel, the airlines know this so a fully flex Y is only nominally cheaper (or indeed more expensive) than discount C/J. Call up the airline & pay 50 quid odd to be bumped up a cabin and at least double your frequent flyer miles.

Don't feel guilty. Clientcos fares are pre negotiated (if they are a large company) and they'll be getting that nice rebate in addition to the offset with HMRC.

Using your own BA AMEX, through the company travel agent would be the goal in the UK. If you can invoice your travel you want to maximise the churn on the card and reap the Avios.

*Not just airlines by the way. On the Caledonian Sleeper an Economy Sleeper for solo use is cheaper than a First class sleeper, because of corporate travel policies not permitting First class tickets.

[vetran]

Do you like films about Gladiators?
Have you bled the radiators?
Do you have Walter Mitty fantasies?
Are you into Squirrels or Guns?
Where is the party?

Plenty posting much cheapness.

[northernladuk]

And just to note.....You've got away with it this time.... Next time make sure you post in the professional forums NOT General....

[FMCG]

But anyway... Here you go...

IR35 and other issues for contractors claiming expenses from clients for flights

Did actually read that from 2012 before posting.

Also googled this topic but also asked here as many have experienced right/wrong way to do these things.

Have no desire to take the card due to

• IR35 ramifications
• will take me over the FRS limit
• payment terms for expenses are 60 days (cf with payment within 7 days for services)

Asking here has reiterated my initial conclusion.

Thanks - happy to with input.

[LondonManc]

Indeed...

But anyway... Here you go...

IR35 and other issues for contractors claiming expenses from clients for flights



Some good stuff in that article about travelling actually...

So, to sum up, IR35 bad if you take the card. Get it through your or their corporate account, not a proxy credit card. Case closed.Next!!

[northernladuk]

Indeed...

But anyway... Here you go...

IR35 and other issues for contractors claiming expenses from clients for flights

IR35 weather warning ahead

But Abbott warns contractors against falling into some classic IR35 traps: “A contractor should not accept a company credit card provided by their client; they should always pay for expenses directly using personal cash or cards, or preferably their contractor limited company resources.

Some good stuff in that article about travelling actually...

[LondonManc]

Dat's true. Back in the day a Corporate Amex was part of the package so yes, good point. But still, the point being available to all or permies was what I was after.

Agreed - just didn't want OP snubbing it because the cleaners couldn't expense their oyster cards

[northernladuk]

I think that you need to be careful on this point; why would cleaners be offered a company credit card unless they are incurring travel expenses? OP needs to confirm if this is provided to all company workers who require travel irrespective of status. The biggest concern is if there is a separate arrangement for consultants v contractors.

I'd offer to take them on to my own credit card and invoice normally.

Dat's true. Back in the day a Corporate Amex was part of the package so yes, good point. But still, the point being available to all or permies was what I was after.

[NickFitz]

Do they offer this to every person offering a service to the client, kitchen staff, cleaners etc or just the PERMIES? (capitalized it just to help with clarity)

There's a good chance they don't often require cleaners or kitchen staff to take flights or stay in hotels in order to provide their contracted services…

[LondonManc]

Do they offer this to every person offering a service to the client, kitchen staff, cleaners etc or just the PERMIES? (capitalized it just to help with clarity)

If it's not available to everyone on site and is a permie perk or requirement then drop it like a hot rock.

Does raise the question on how your client perceives you if they think you should be having this type of thing. No point you worrying about your IR35 status is your client thinks you are a permie and is going to treat you like one you are screwed.

And honestly... If you can't see the IR35 issue here you want to go read up. Asking basic questions every time something happens that you 'think' might have an IR35 issue is a really poor way to go about it.

EDIT : Have you checked what they book you? Some company booking agents end up giving the clients a worse deal and booking it yourself can get much better flights at a better cost.

I think that you need to be careful on this point; why would cleaners be offered a company credit card unless they are incurring travel expenses? OP needs to confirm if this is provided to all company workers who require travel irrespective of status. The biggest concern is if there is a separate arrangement for consultants v contractors.

I'd offer to take them on to my own credit card and invoice normally.

[northernladuk]

Do they offer this to every person offering a service to the client, kitchen staff, cleaners etc or just the PERMIES? (capitalized it just to help with clarity)

If it's not available to everyone on site and is a permie perk or requirement then drop it like a hot rock.

Does raise the question on how your client perceives you if they think you should be having this type of thing. No point you worrying about your IR35 status is your client thinks you are a permie and is going to treat you like one you are screwed.

And honestly... If you can't see the IR35 issue here you want to go read up. Asking basic questions every time something happens that you 'think' might have an IR35 issue is a really poor way to go about it.

EDIT : Have you checked what they book you? Some company booking agents end up giving the clients a worse deal and booking it yourself can get much better flights at a better cost.

[Pondlife]

Why not pay for it on YourCo's card and add it to your invoice?

Then;
a) no IR35 issues
b) You get the points

[FMCG]

My ClientCo wants to issue me with one of their nominated company credit cards. Initial thoughts are not to take such an item.

For the past few months my "ClientCo Manager" has paid for flights/hotels/expenses (and collected the points ). His VP has now instructed that I should fly/visit/etc overseas sites as required without a "handler".

A nice lady (read VP's EA) currently books my flights/travel and this would not change solely to which card the invoice will be booked.

Anything that I should be aware of if taking ClientCo card eg in relation to IR35 or such potential issues in the eyes of HMRC.