Question about expenses Question about expenses
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  1. #1

    Nervous Newbie


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    Default Question about expenses

    Hi,

    Need some help, sorry this question may have been posed many times before but I am not clear.

    I’m new to contracting and have just set up a limited company (am director and am employee) and started as a worker providing IT Consultancy Services.

    I have a client for 6 months, and I will be working with them 100 miles away from home. On a 5 day week basis. I’m outside of IR35, this has been checked.

    My accountant is saying I can’t offset my travel expenses against my revenue so I would reduce my corporation tax bill. Is this really right? She is not a contractor specialist accountant.

    They are saying I either get a P11d value and tax implication or I have to pay my expenses personally and claim back through dividend (so would have already paid corporation tax).

    I always thought justifiable and appropriate travel expenses to a temporary work location were possible to offset against profit, have I been wrong?

  2. #2

    Should post faster


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    Your accountant is wrong - you can claim these expenses from your company. You’d be impacted by the 24 month rule however if t came to that given you’re there five days a week.

  3. #3

    My post count is Majestic

    northernladuk's Avatar
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    Firstly I'd point your accountant at threads such as these and ask her to explain herself in detail why she thinks you can't.

    Contractor Expenses: Meal Allowances

    or tell her to google it and see what she comes up with.

    Secondly...

    She is not a contractor specialist accountant.
    Based on the quote and this thread I'd go get a contractor specialist pronto...
    Last edited by Contractor UK; 12th October 2018 at 21:35.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

  4. #4

    Double Godlike!

    malvolio's Avatar
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    And you're not an employee, you're a salaried officer of the company. Keep that distinction clear.
    Blog? What blog...?

  5. #5

    Super poster


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    Fire them.

  6. #6

    Super poster


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    Get a better accountant.

  7. #7

    More time posting than coding


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    I concur with the above. The accountant is wrong.

  8. #8

    Nervous Newbie


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    Default Thank you...further question

    Hi all, thank for your help. Much appreciated.

    I challenged the accountant and she has come back with the following say I still don’t get relief. Does this sound right?

    The 24 month rule relates to temporary workplaces (EIM32075 & EIM32080). Although, I appreciate, it may seem that London can be treated as a temporary workplace, however, as Jack The Dogs Consultancy Services Limited is a Personal Service Company (PSC), one also needs to consider the “Employment Intermediaries” guidance (EIM32135), Section 339A ITEPA 2003, that was introduced on 6 April 2016, where it confirms, “…that each engagement undertaken by a worker who personally provides their services through an employment intermediary will be considered a separate employment for the purposes of travel and subsistence. This will mean that generally no relief will be given for home-to-work travel costs and associated subsistence…” for the employee.

    On this basis I will get no relief and I don’t agree. Other workers as contractors in my current contract (all through agencies on a similar basis) are able to offset, but I am not. Has she set me up incorrectly as a personal service organisation perhaps?

    I need a new accountant who specialises in contractors, can anyone reccomend please?

  9. #9

    Nervous Newbie


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    Default Thank you...can you recommend at all?

    Quote Originally Posted by TheCyclingProgrammer View Post
    Get a better accountant.
    Can you recommend any? Ta

  10. #10

    Nervous Newbie


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    Default Help

    Quote Originally Posted by simes View Post
    I concur with the above. The accountant is wrong.
    Any recommendations?

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