International travel expenses International travel expenses
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  1. #1

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    Default International travel expenses

    Hi,

    I'll be doing an international trip as part of a client engagement.

    What is the IR35 savvy way of doing this? If the client books it for me is this a problem?

    Cheers,
    Untouchable1

  2. #2

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    Guess no one reads basic guides anymore so...

    Pay for it yourself on the points card and invoice them if you can. If they insist on booking and paying for it then just do that

    Minor IR35 point at the very best and if they've made a business choice due to insurances etc and everyone has to use it then it can't be a factor at all.
    Last edited by northernladuk; 15th August 2019 at 13:42.
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  3. #3

    More time posting than coding


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    I book it myself using my points credit card and then invoice it to the client. This way, I can book my travel separately to the programme manager which is good for my sanity.

    Though every few months someone will kick up a storm as to why I'm not booking through their internal system and I've said I'll do it if you can get me into your travel system. Rinse and repeat. It's not that straightforward to get a contractor into the client travel booking system at this particular client. All permie's have employee ID, whereas contractors don't have any employee ID # and the travel booking system can't deal with that.

  4. #4

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    1. If the client pays for it, happy days. I see no IR35 implications of this, especially if it works out cheaper for the client this way - it's just a business agreement and its less paperwork.

    2. If YourCo pays directly and client is happy to reimburse, you need to invoice them (and charge VAT on top of whatever you agree to charge them). Normally you would invoice them for what it has cost you net of any original VAT (if any) and then charge your VAT on top, but what you actually re-charge is between you and the client. Some people on the flat-rate VAT scheme prefer to re-charge the gross amount (+ VAT) as they cannot recover the input VAT directly. That's also fine but might not be what your client or agency expects (search for previous threads on this, there's no point in re-hashing this here).

    3. If you pay and claim the costs from YourCo, the procedure is still the same as number 2 above, except you expense claim the costs from YourCo, who reimburses you, then YourCo re-charges the cost to the client.

    Generally I would go with 1 or 2 depending on a) cashflow and b) how prompt the client is at paying.
    Last edited by TheCyclingProgrammer; 15th August 2019 at 15:24.

  5. #5

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    Quote Originally Posted by TheCyclingProgrammer View Post
    1. If the client pays for it, happy days. I see no IR35 implications of this, especially if it works out cheaper for the client this way - it's just a business agreement and its less paperwork.

    2. If YourCo pays directly and client is happy to reimburse, you need to invoice them (and charge VAT on top of whatever you agree to charge them). Normally you would invoice them for what it has cost you net of any original VAT (if any) and then charge your VAT on top, but what you actually re-charge is between you and the client. Some people on the flat-rate VAT scheme prefer to re-charge the gross amount (+ VAT) as they cannot recover the input VAT directly. That's also fine but might not be what your client or agency expects (search for previous threads on this, there's no point in re-hashing this here).

    3. If you pay and claim the costs from YourCo, the procedure is still the same as number 2 above, except you expense claim the costs from YourCo, who reimburses you, then YourCo re-charges the cost to the client.

    Generally I would go with 1 or 2 depending on a) cashflow and b) how prompt the client is at paying.
    And I'd prefer 2 over 3 because the person handling my expenses is an incompetent moron.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

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