I am working in the public sector, in scope, through an agency. No room for me to argue I'm out of scope as I'm covering a perm role until the recruitment is completed. The agency and PSB have been reasonably understanding given the circumstances and both have agreed I can continue to be PSC.
I work away from home Monday to Friday and pay my own expenses, which includes my hotel bill and travel. To be clear I travel around 150 miles on a Monday and then back again on Friday and stay in the same hotel every night. The PSB has indicated it has in principle no objection to paying my hotel bills and adjusting my rate with the agency but it will declare these as benefits in kind so I don't think that helps me.
We all know that under the rules the expenses can't be set against tax at source as employees and ers tax are payable at source with income tax which puts me in a difficult situation.
My question is one I haven't seen asked before. Can I still continue to charge my hotel and travel expenses to my limited company, albeit the company has no funds to pay them (in the same way it has no funds to pay for my website or insurance etc.) as all the tax has been deducted at source?
Clearly the limited company would be loss making and insolvent (which I would be prepared to support through a directors loan) but I'm thinking that at some future point if I got a contract outside IR35 I then have more options which would include either paying the expenses or paying back the directors loan.
Also, by charging the hotels bills against my limited company I can at least offset the input VAT on the hotel bills against my total output VAT bill (noting I've been screwed on the flat rate scheme which I've now de-registered from)
Any help would be greatly appreciated.
I work away from home Monday to Friday and pay my own expenses, which includes my hotel bill and travel. To be clear I travel around 150 miles on a Monday and then back again on Friday and stay in the same hotel every night. The PSB has indicated it has in principle no objection to paying my hotel bills and adjusting my rate with the agency but it will declare these as benefits in kind so I don't think that helps me.
We all know that under the rules the expenses can't be set against tax at source as employees and ers tax are payable at source with income tax which puts me in a difficult situation.
My question is one I haven't seen asked before. Can I still continue to charge my hotel and travel expenses to my limited company, albeit the company has no funds to pay them (in the same way it has no funds to pay for my website or insurance etc.) as all the tax has been deducted at source?
Clearly the limited company would be loss making and insolvent (which I would be prepared to support through a directors loan) but I'm thinking that at some future point if I got a contract outside IR35 I then have more options which would include either paying the expenses or paying back the directors loan.
Also, by charging the hotels bills against my limited company I can at least offset the input VAT on the hotel bills against my total output VAT bill (noting I've been screwed on the flat rate scheme which I've now de-registered from)
Any help would be greatly appreciated.
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