Allowable expenses advice Allowable expenses advice
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  1. #1

    Nervous Newbie


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    Default Allowable expenses advice

    Hello House,

    I would appreciate some help here please regarding travel expenses.

    Am just about starting my first contract being a permie all these while.

    The job is in London and my company house/home is in Edinburgh so I shall be coming travel back to Edinburgh every weekend.

    I just wanted to find out If I'll be able to claim back the cost of flights

    Appreciate response on this thanks.

  2. #2

    My post count is Majestic

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    You've got an accountant? You might want to read the newbie guides to the right-->
    Specifically the one about expenses.

    But yes.

    http://www.contractoruk.com/expenses...e_claimed.html
    Last edited by northernladuk; 22nd February 2017 at 00:57.
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  3. #3

    I live on CUK

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    Oh and if the contract is a public sector one don't bother starting.
    "You’re just a bad memory who doesn’t know when to go away" JR

  4. #4

    Fingers like lightning


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    To be clear, when you say 'claim back' you mean that they are allowable expenses for tax purposes?


    If so, yes, subject to various caveats.

    If you are inside IR35, you cannot claim travel and subsistence expenses.
    If you are expecting to work in London for more than 24 months (or have been) then you cannot claim.

  5. #5

    Should post faster


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    Agree with teapot418.

    You will need to consider your status under IR35 before considering whether you can claim expenses related to travel and subsistence and should take professional advice with regards to this. A review of your contract and working conditions would also be sensible steps to take.

    If, however your contract is with a public sector client then you would need to speak with either the agency or a representative of your end client to obtain information on their attitude to your contract and whether they consider you to be caught by the new rules for off payroll workers in the public sector or not.

    If your contract is outside IR35 and you have not been / are not aware that you will be working at that location for more than 24 months then you can claim the cost of any travel and subsistence that has been incurred "wholly, exclusively and necessarily for the purpose of the trade".

  6. #6

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    There is an assumption here that if the OP was previously permie and lives in Edinburgh its unlikely he was working in London so the 24 months is a long shot.
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  7. #7

    More time posting than coding


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    Quote Originally Posted by northernladuk View Post
    There is an assumption here that if the OP was previously permie and lives in Edinburgh its unlikely he was working in London so the 24 months is a long shot.
    When I was permie, I lived in Reading and worked in Glasgow Monday to Friday for 23 months before leaving the project. I'm sure that there are plenty of permanently employed consultants who live and work like that.
    First they ignore you, then they laugh at you, then they fight you, then you win. But Gandhi never had to deal with HMRC

  8. #8

    Should post faster


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    I agree NLUK, just wanting to cover all bases.

  9. #9

    Nervous Newbie


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    Thanks so much guys.

    To clarify what I meant by 'claim back' was that if the weekly travel back to Edinburgh falls under allowable expenses.

    My contract is outside IR35 so I guess from what has been said so far I should be OK

  10. #10

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    Quote Originally Posted by Donvigeo View Post
    Thanks so much guys.

    To clarify what I meant by 'claim back' was that if the weekly travel back to Edinburgh falls under allowable expenses.

    My contract is outside IR35 so I guess from what has been said so far I should be OK
    Yes, you're fine. I live in Manchester and rented a flat in London.
    I would NOT recommend it as there are far cheaper accommodation options.
    I now travel down Monday and return Thursday/Friday, paying only for the accommodation that I use; paying for Friday, Saturday and Sunday is dead money. That's without the extra bills like utilities, council tax, potential issues if you stay over at a weekend and so on.

    Expenses claimed are taxi to station on Monday morning, train to London, accommodation in London, train back from London, metrolink fare from Manchester Piccadilly back home. A massive rental bill could leave you short on warchest or even leave you unable to max out your tax-efficient dividends.
    The greatest trick the devil ever pulled was convincing the world that he didn't exist

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