Hi, I'm a software developer contractor. I only recently started contracting and my first gig is a 3 month fixed term project. I've been trying to understand all the legalities and rules but I'm getting conflicting advice. I hired an accountant but I don't think she specialises in IT contractors and she's giving me conflicting advice to what I read on the CUK website. I am director of a limited company and I'm the only employee.
My contract with the client is very careful to not imply that I am an employee. I don't have a desk or office I have to be at, I work what ever hours I want, as long as I get the work done. I'm there to deliver a specific project and it's a fixed term/price contract. I charge by the day.
I drive to the client's premises mostly every Mon, Wed, Fri for a few hours to chat about the progress of the project and demo my work. I go home after lunch and continue to work from home. On Tues and Thurs I work from home. It's important to point out that I chose these days to see the client because it suits my schedule. The client did not ask me to come in on any particular days. I have worked bank holidays from home when the permanent staff were off. I've worked at weekends because it suited me. Occasionally I don't go in on a Monday (or Wed or Fri) if I need to do something else at home. I inform the client when I do that but I don't need their permission.
My accountant is saying that because I go to the client's offices on a regular basis, I could be seen as an employee of the client, and therefore I cannot claim my car travel expenses at 45p per mile. She said that if I went on on irregular days, e.g. Mon this week, and Thurs next week, and Tues the week after that, then I wouldn't be seen as an employee. Is she just covering her arse?
My understanding is that going to a client's premises can be unavoidable if you work in software development, especially if working with sensitive data or you have to work on the client's systems, and doesn't automatically make you an employee. And even if I fall into IR35 I can still claim travel expenses according to the CUK website. Although, I rang someone at SJD Accountancy and she said that from April 2016 contractors who fall into IR35 cannot claim travel expenses. Is that true?
After this contract finishes I might have another lined up in London. It would be a long term contract, possibly 6 months rolling, to work on various large projects. I would need to get the train into London at £60 a day. I've agreed with this potential client that I can go in to their offices 2 days week to have a catch up, The other 3 days I'm going to London for training (not related to the client). So now I'm worried that I can't claim any of my train tickets as expenses. It's a lot of money! My accountant says that because the contract could go on for 2 years, I definitely would be classed as an employee. She seems to think that whether or not I fall into IR35 is all about how often I go to the client's premises and how long the contract is for.
To summarise:
My current contract - can I claim my mileage expenses?
My next contract - can I claim my train costs?
Thanks in advance,
a very frustrated developer
My contract with the client is very careful to not imply that I am an employee. I don't have a desk or office I have to be at, I work what ever hours I want, as long as I get the work done. I'm there to deliver a specific project and it's a fixed term/price contract. I charge by the day.
I drive to the client's premises mostly every Mon, Wed, Fri for a few hours to chat about the progress of the project and demo my work. I go home after lunch and continue to work from home. On Tues and Thurs I work from home. It's important to point out that I chose these days to see the client because it suits my schedule. The client did not ask me to come in on any particular days. I have worked bank holidays from home when the permanent staff were off. I've worked at weekends because it suited me. Occasionally I don't go in on a Monday (or Wed or Fri) if I need to do something else at home. I inform the client when I do that but I don't need their permission.
My accountant is saying that because I go to the client's offices on a regular basis, I could be seen as an employee of the client, and therefore I cannot claim my car travel expenses at 45p per mile. She said that if I went on on irregular days, e.g. Mon this week, and Thurs next week, and Tues the week after that, then I wouldn't be seen as an employee. Is she just covering her arse?
My understanding is that going to a client's premises can be unavoidable if you work in software development, especially if working with sensitive data or you have to work on the client's systems, and doesn't automatically make you an employee. And even if I fall into IR35 I can still claim travel expenses according to the CUK website. Although, I rang someone at SJD Accountancy and she said that from April 2016 contractors who fall into IR35 cannot claim travel expenses. Is that true?
After this contract finishes I might have another lined up in London. It would be a long term contract, possibly 6 months rolling, to work on various large projects. I would need to get the train into London at £60 a day. I've agreed with this potential client that I can go in to their offices 2 days week to have a catch up, The other 3 days I'm going to London for training (not related to the client). So now I'm worried that I can't claim any of my train tickets as expenses. It's a lot of money! My accountant says that because the contract could go on for 2 years, I definitely would be classed as an employee. She seems to think that whether or not I fall into IR35 is all about how often I go to the client's premises and how long the contract is for.
To summarise:
My current contract - can I claim my mileage expenses?
My next contract - can I claim my train costs?
Thanks in advance,
a very frustrated developer
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