Hi,
I've been on my first contract for six months as an umbrella, now changing to Ltd. I started receiving expenses after three, because my place of work changed to a location beyond commutable distance. Dave Chaplin's Contractor's Handbook says (in the IR35 chapter):
"Contractors pay their own expenses: Some clients are prepared to pay certain contractor expenses. This can attract attention as it can be seen as a sign of employment. You should include expenses as part of your rate, or only claim expenses for agreed exceptional items such as if your Manchester-based project required you to visit the client's Brussels office."
Is this really true? If I run a plumbing business, I can charge a call-out fee to cover my expenses in travelling to and parking at a client's premises. How is this any different except the quantity of time? According to Hays, they have many other contractors who charge expenses. I don't see how charging expenses makes me a disguised employee.
I'm coming up to renewal. If I can no longer charge expenses for fear of being inside IR35, I'd have to negotiate adding it to my day-rate, which I'd prefer not to have to do.
Advice welcome, many thanks.
I've been on my first contract for six months as an umbrella, now changing to Ltd. I started receiving expenses after three, because my place of work changed to a location beyond commutable distance. Dave Chaplin's Contractor's Handbook says (in the IR35 chapter):
"Contractors pay their own expenses: Some clients are prepared to pay certain contractor expenses. This can attract attention as it can be seen as a sign of employment. You should include expenses as part of your rate, or only claim expenses for agreed exceptional items such as if your Manchester-based project required you to visit the client's Brussels office."
Is this really true? If I run a plumbing business, I can charge a call-out fee to cover my expenses in travelling to and parking at a client's premises. How is this any different except the quantity of time? According to Hays, they have many other contractors who charge expenses. I don't see how charging expenses makes me a disguised employee.
I'm coming up to renewal. If I can no longer charge expenses for fear of being inside IR35, I'd have to negotiate adding it to my day-rate, which I'd prefer not to have to do.
Advice welcome, many thanks.
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