Hi,
I operate via my own ltd company and have taken up a new contract which will be inside IR35. The work involves travelling to a different location every week and staying there for a couple of days for the first month. The client has agreed to reimburse the travel and hotel bills. My accountant says that the reimbursements will be taxed as if they were my earnings. As I will be paying for the expenses out of my income which has already been taxed I don't see a point in paying tax again on the reimbursements! Is there any way to avoid this. Please suggest. Thanks
I operate via my own ltd company and have taken up a new contract which will be inside IR35. The work involves travelling to a different location every week and staying there for a couple of days for the first month. The client has agreed to reimburse the travel and hotel bills. My accountant says that the reimbursements will be taxed as if they were my earnings. As I will be paying for the expenses out of my income which has already been taxed I don't see a point in paying tax again on the reimbursements! Is there any way to avoid this. Please suggest. Thanks
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