Reply to: IPSE have sent an email out

[malvolio]

This isn't unusual for home-based employees, not everyone has a base (company) office.

Taking TfL as an example, a pal of mine works for one of their suppliers and he's home-based. Travels to one of their London offices most days - all expensed.

Not any more it isn't. At least, not for us: we're not employees.

[b r]

Can clientCo's employees claim home to work travel?

This isn't unusual for home-based employees, not everyone has a base (company) office.

Taking TfL as an example, a pal of mine works for one of their suppliers and he's home-based. Travels to one of their London offices most days - all expensed.

[eek]

Can clientCo's employees claim home to work travel? Under the changed rules last year, for the duration of your contract, the main site becomes your 'permanent' workplace. You would still be able to claim for trips to other sites etc, in the same way as employees of clientCo would.

But as we witnessed in a thread late last year if you head to a client site every week the umbrella /agency may decide that you expenses are simply part of the renumeration that needs to be taxed as incone

[teapot418]

Discuss?

Can clientCo's employees claim home to work travel? Under the changed rules last year, for the duration of your contract, the main site becomes your 'permanent' workplace. You would still be able to claim for trips to other sites etc, in the same way as employees of clientCo would.

[jamesbrown]

Discuss?

Following the changes to the T&S rules last year, you can no longer claim tax relief on home to work travel when operating inside IR35 (or subject to SDC via an umbrella) because each engagement is considered a separate employment to which you would be "ordinarily commuting" and for which no tax relief is available to employees.

[Yorkie62]

New guide here. Haven't read it yet...

In the process of reading the guide and came accross this bit

How will business expenses be taken into account?
The five per cent allowance which is made for business
expenses in the normal IR35 rules has been removed for these
public sector arrangements. Needless to say, IPSE believes this
is extremely unfair. There is no allowance for legitimate business
costs such as accountancy and insurance. This is particularly
punitive as for many contractors these costs are necessary and
substantial. IPSE has pressed the Government to reconsider
these allowances.
The only allowable expenses are:
• the direct cost of materials used in performance of the
services; and
• expenses that would have been deductible if the worker had
been the client’s employee.

Now, having worked for a small consultancy in the past, on a 'Home based contract' we could claim travel and subsistence expenses when working away from our 'base' - Home Address. Therefore, if your contract with the agency and your co, stating your co's registered address, and the clients employees are allowed to claim travel and subsistence expenses when working away from their base location, i.e. at another client co's site, then is it not reasonable to be allowed to claim travel and subsistence expenses from your ltd co's registered address and the clients co's site as your base location when working through a limited co is always your registered address?

Discuss?

[jamesbrown]

New guide here. Haven't read it yet...

[PStanley70]

Umbrellas that allow salary sacrifice into a SIPP

There are plenty of brella companies. Not all have that restriction

Do you have any suggestions for umbrellas who will fund a SIPP? All the umbrellas I've talked to only allow salary sacrifice into their own scheme. Obviously this could be used as a temporary home for the funds and then transfer out, but it's preferable to fund the SIPP directly.

[DaveB]

There are plenty of brella companies. Not all have that restriction

And the reputable ones may well start offering the ability to pay into a specific pension account as the landscape changes. There are going to be lots of contractors potentially looking for a good brolly, so that could well be a major selling point for them.

[eek]

And it is worth pointing out that if you use an umbrella (probably the best option given their experience ) you can usually only pay into THEIR pension scheme.

There are plenty of brella companies. Not all have that restriction

[DotasScandal]

And it was the working out of who to target that was time consuming not the triggering of an inquiry. That but is easy. And if it takes years for the investigations to play out hmrc won't care they'll just get their psychological department to ramp up the pressure

Exactly this.
DOTAS/APNs are the blueprint, just look at the protocol being applied in that area.

[youngguy]

I suspect that agencies won't cope with salary sacrifice which is why in the FAQ at the top I emphasis it as a reason to use an umbrella.

I would point out that is not a great option (other changes in April make umbrellas more expensive than before) but it's the best deal if you want to pay largish Sums into a pension

And it is worth pointing out that if you use an umbrella (probably the best option given their experience ) you can usually only pay into THEIR pension scheme.

[northernladuk]

And, exactly what resources does that involve from HMRC then? None at all, perhaps?

None? Really?

[eek]

I'm not so sure.....look at DOTAS and other such things.

HMRC can spend the next few yrs sending letters out and chasing and that will be far easier than their current method of starting investigations.

Remember half of this is about HMRC trying to make themselves look better after underperforming for 2 decades.

+1. Prior to April working out who to investigate was largely down to manual effort and guess work. Come April there is a dataset of plausible cases to play with.

And it was the working out of who to target that was time consuming not the triggering of an inquiry. That but is easy. And if it takes years for the investigations to play out hmrc won't care they'll just get their psychological department to ramp up the pressure

[Fred Bloggs]

I suspect that agencies won't cope with salary sacrifice which is why in the FAQ at the top I emphasis it as a reason to use an umbrella.

I would point out that is not a great option (other changes in April make umbrellas more expensive than before) but it's the best deal if you want to pay largish Sums into a pension

Absolutely, employee or MyCo director, salary sacrifice or employer contributions are awesome. While it lasts. The last review of salary sacrifice came close to abolishing it, IIRC.