new contract situation for me

[SueEllen]

thanks for the replies

Ill just add the expense onto the invoice at the end of the month

As long as they have agreed to pay the expense.

[looonytunes]

thanks for the replies

Ill just add the expense onto the invoice at the end of the month

[SueEllen]

to put it more simply

I normally pay for such things through my Ltd when working away from home.

The client have said they are willing to do so which as a contractor I've not come across before.

From what I understand this is an employee perk and so Im not going to do it.

Not necessarily.

I have had some clients who offer to pay for hotel costs for their contractors as they have difficulty getting and retaining them. In my case because I was near by I didn't want this and wanted the money.

Out of curiosity I was wondering which would be more cost effective. Claiming it back via my ltd thus reducing my tax liability at the end of the year VS not having to pay out for them but paying more tax at the end of the year

Your client is within their right to refuse to reimburse you. I would just simplify it by agreeing a rate increase.

[MrMarkyMark]

to put it more simply

I normally pay for such things through my Ltd when working away from home.

The client have said they are willing to do so which as a contractor I've not come across before.

From what I understand this is an employee perk and so Im not going to do it.

Out of curiosity I was wondering which would be more cost effective. Claiming it back via my ltd thus reducing my tax liability at the end of the year VS not having to pay out for them but paying more tax at the end of the year

Well, I have come across it many times and its bloody good o when you get expenses on top.
Certainly not unusual at a senior consultant contractor level operating offshore, first / business class flights, cabs, good hotels, all meals, sometimes drinks etc. are standard.

You usually supply a copy of the invoices to the client and add a total expenses line on to your LTDs invoice.

As I said, earlier, job done

[RonBW]

to put it more simply

I normally pay for such things through my Ltd when working away from home.

The client have said they are willing to do so which as a contractor I've not come across before.

From what I understand this is an employee perk and so Im not going to do it.

Out of curiosity I was wondering which would be more cost effective. Claiming it back via my ltd thus reducing my tax liability at the end of the year VS not having to pay out for them but paying more tax at the end of the year

If they do this for other suppliers, then it doesn't make you stand out from any other supplier, so shouldn't impact your IR35 status.

Turning away free money seems a poor business decision to me.

[looonytunes]

to put it more simply

I normally pay for such things through my Ltd when working away from home.

The client have said they are willing to do so which as a contractor I've not come across before.

From what I understand this is an employee perk and so Im not going to do it.

Out of curiosity I was wondering which would be more cost effective. Claiming it back via my ltd thus reducing my tax liability at the end of the year VS not having to pay out for them but paying more tax at the end of the year

[SueEllen]

Im starting a new contract role in a week or two and the company have said when Im not working from my home base they will pay accommodation and an allowance for a meal.

Clearly alarm bells are ringing for me as that effectively makes me an employee. Question is, if i do take them up on their offer (which Ive never done before) then does that put me into a very grey area (employee)

and if I do I would not be claiming milage / sustenance through my own Ltd, does anyone know if this is more or less cost effective when it comes to paying corp tax on profit

hope that make sense

Cheers

No it doesn't make sense.

You can claim mileage or travel to/from your accommodation, and to/'from the accommodation to/from the client's site if you aren't walking You can claim breakfast, lunch and dinner if you aren't working at home.

The reason the client is putting you up because they are likely screwing you on the rate, have had contractors leave before claiming they can't afford the additoinal expense of the hotel and meals, and don't want to run into problems of you charging VAT on the entire bill which may or may not have VAT on it.

To make it easier for you get them to book a hotel with breakfast then claim everything else through your limited.

[northernladuk]

And maybe read up on IR35 to have a better idea what makes you look like an employee or not.

[MrMarkyMark]

Im starting a new contract role in a week or two and the company have said when Im not working from my home base they will pay accommodation and an allowance for a meal.

Clearly alarm bells are ringing for me as that effectively makes me an employee. Question is, if i do take them up on their offer (which Ive never done before) then does that put me into a very grey area (employee)

and if I do I would not be claiming milage / sustenance through my own Ltd, does anyone know if this is more or less cost effective when it comes to paying corp tax on profit

hope that make sense

Cheers

Charge the expenses they will pay on top of your standard LTD Company VAT invoice, as a separate itemised line.

Job done

[looonytunes]

Im starting a new contract role in a week or two and the company have said when Im not working from my home base they will pay accommodation and an allowance for a meal.

Clearly alarm bells are ringing for me as that effectively makes me an employee. Question is, if i do take them up on their offer (which Ive never done before) then does that put me into a very grey area (employee)

and if I do I would not be claiming milage / sustenance through my own Ltd, does anyone know if this is more or less cost effective when it comes to paying corp tax on profit

hope that make sense

Cheers