Am I a PSC? Will I have to pay travel expenses now?

[CaptainDanger]

Hi everyone, I have been researching if I'm a PSC or not as I figure that if I'm not then I won't be subject to the new T&S restrictions coming in the new financial year? I originally thought I was a PSC and indicated that on my SA form last year when I didn't think it would make any difference and then along comes the rule changes. Can you help me ascertain this for sure? Here is my circumstances:

1. I am working for my client via my own LTD as a management consultant, no agency or intermediary involved. I invoice direct to the client.

2. I have been working for my client for 2 years now, informally up until last April with no contract, at which time I signed a new 12 month contract expiring with them April 1st 2016. <Insert April Fools joke here!!!>

3. I work from home unless I travel to the various sites where my client has a customer of which there are 3 main customers so I am travelling to various client customer's sites around the country on a fairly regular basis, visiting each site roughly once a fortnight and one site every week.

4. During my normal working activities I am not under SDC from the client co as I work both for the client and with the client as a consultant to the client customer companies so take direction from both client and his customer, but ultimately the client co. being my paymaster has significant influence.

5. I never bother claiming any meals/food in order to avoid any issues with HMRC as there are many schools of thought regarding that one and my accountant wasn't that clear on it either.

Will I be able to claim travel costs? Train tickets and/or mileage allowance?
If I can't, can I incorporate a new LTD Co. to reset any timers and then be eligible to claim? I spend quite a significant amount on petrol and train tickets so this will hit me hard.
I know my client co. directors personally so have the freedom to change LTD, contract or whatever else as they wouldn't want to see my income effectively drop in such a huge way.
Any other suggestions?

Many thanks, Cap'n Danger

[administrator]

Welcome to the site Cap'n! PSC means Personal Service Company. You are an owner-managed business so yes, you are a PSC.

So no problem claiming travel expenses as you are outside IR35 as well. No SDC but to make sure it might be worth getting your contract checked out by one of the experts just to make sure you are clear should HMRC knock.

[northernladuk]

Did your research include asking your accountant?

[mudskipper]

2. I have been working for my client for 2 years now...

No, you can't claim travel expenses, assuming you've been at the same location for this time. Google the 24 month rule, or see the sticky.

Nothing to do with whether you're a PSC or not. Winding up the company does not reset this.

You cannot claim from the point where you know you will be there for more than 24 months.

[Alan @ BroomeAffinity]

No, you can't claim travel expenses, assuming you've been at the same location for this time. Google the 24 month rule, or see the sticky.

Nothing to do with whether you're a PSC or not. Winding up the company does not reset this.

You cannot claim from the point where you know you will be there for more than 24 months.

Works from home predominantly it says. Probable better check the 40% rule too.

[Alan @ BroomeAffinity]

*probably

[mudskipper]

Works from home predominantly it says. Probable better check the 40% rule too.

Missed that On a re-read, it sounds like it should be permissible anyway, if it's end client sites. The new restrictions for inside IR35 only apply to travel to the main location of the contract - so end client sites would be allowed in the same way as for permies.

[CaptainDanger]

Thanks Everyone for helping this newbie, the next step is to speak with the accountant, but to be perfectly honest they are okay when it's a strictly technical question, otherwise they wander off into a world of mystery and vagueness, probably to avoid any possible finger pointing! Hence why I wanted to get a balanced view and see what my learned more experienced contracting compadres thought. So from what I read it looks like I should be okay come the new financial year to continue claiming my travel expenses. Should I describe myself as a PSC in my next SA, or do you think I misjudged that? I have the accountants do everything apart from my SA, which I feel is just a little bit too much too put in one person's hands entirely, it feels like handing over your soul.
Maybe I'm being paranoid?

[northernladuk]

You are being paranoid and you are not using your enter key enough. HTHBIDI.

[Alan @ BroomeAffinity]

Probably paranoid yes.

I'm not one for disparaging fellow professionals but if you're receiving vague and woolly advice maybe think about changing accountants. This isn't a complex area and the rules are fairly clearly. Shouldn't be difficult to be decisive.