Contractor Subsistence - Travel/Accommodation, etc.

[MarkWealthy]

From 6th April 2016 I hear we are no longer able to claim travel & hotel accommodation costs whilst working at site.

Is this correct or, are there certain cases it is not correct?

I will be working approximately 100 miles away on a site and will need to stay 4 nights in a hotel. I work through my limited company and I am not a Managed Service Company nor an Umbrella Company.

I would be grateful for some clarification!

[northernladuk]

Google is your friend...as is your accountant if you have one.

April 2016 | Changes to Travel and Subsistence Expenses

https://www.google.co.uk/search?q=T%...nd+subsistence

[TheFaQQer]

Is this correct or, are there certain cases it is not correct?

No, it's not correct.

If you operate via an umbrella and are subject to direction or supervision or control by anyone - then you can't claim.

If you operate inside IR35, then you can't claim.

If you are neither, then you can continue to claim travel and subsistence for temporary locations, as long as you don't fall foul of the two-year rule.

[BenDover]

No, it's not correct.

If you operate via an umbrella and are subject to direction or supervision or control by anyone - then you can't claim.

If you operate inside IR35, then you can't claim.

If you are neither, then you can continue to claim travel and subsistence for temporary locations, as long as you don't fall foul of the two-year rule.

If you work through an agency you will automatically be classed as having SDC but, if you can obtain a document signed by a director from the end user and the agency stating that you are not working under SDC then you will continue to claim as normal.

[mudskipper]

If you work through an agency you will automatically be classed as having SDC but, if you can obtain a document signed by a director from the end user and the agency stating that you are not working under SDC then you will continue to claim as normal.

I presume you're talking umbrella users here.

Not quite "as normal" - my understanding is that the expenses will now need to be reclaimed via your self assessment, but I may have got the wrong end of the stick.

[BenDover]

I presume you're talking umbrella users here.

Not quite "as normal" - my understanding is that the expenses will now need to be reclaimed via your self assessment, but I may have got the wrong end of the stick.

If you are engaged with an agency through your own limited company/CIS or PAYE then you are automatically classed as having SDC.

If you are through your own limited company, you can only claim the standard 5% of the invoice value.

[SlipTheJab]

If you are engaged with an agency through your own limited company/CIS or PAYE then you are automatically classed as having SDC.

If you are through your own limited company, you can only claim the standard 5% of the invoice value.

Wrong. I suggest you do some more research.

[Alan @ BroomeAffinity]

If you are engaged with an agency through your own limited company/CIS or PAYE then you are automatically classed as having SDC.

If you are through your own limited company, you can only claim the standard 5% of the invoice value.

Not true. Not even nearly. Limited company contractors are not assumed to be under SDC.

[BenDover]

Wrong. I suggest you do some more research.

I suggest you read the draft legislation which I have done so a number of times, then place a call into Philip Horswill at HMRC of whom is directly involved in delivering the new legislation like I have done on a number of occasions.

Too many people read legislation how they want it to read rather than how HMRC want it to be read.The first 3 pages defines who is subject to SDC and it definitely states that if you work through an intermediary then you are caught and that includes limited companies.

Happy reading people!

[mudskipper]

A limited company contractor, operating outside IR35, is not considered to be an 'agency worker', so the legislation that you're quoting does not apply.

See p7. https://www.gov.uk/government/upload...s-guidance.pdf

The key elements required for someone to be an agency worker are:
• there is a contract (an employment contract or a contract to perform work
personally) between the worker and a TWA;
• that worker is temporarily supplied to a hirer by the TWA; and
• when working on assignment the worker is subject to the supervision and
direction of that hirer
AND
• the individual in question is not in a business on their own account
(where they have a business to business relationship with the hirer who
is a client or customer)