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View Full Version : Expenses - travel, food, hotel in a public sector inside IR35 role



pscont
8th January 2018, 08:37
The role is with MoD, via parasol umbrella. They clain I can claim expenses if I am not subject to SDC in my contract.


Business costs & mileage expenses
You don't pay tax and National Insurance Contributions (NIC) on your business costs or mileage claims if your assignment is not subject to SDC. If it is, you'll only get tax relief on business cost claims. The amounts are deducted from the invoice value before calculating taxable pay.

As far as I know this is not the case and if you are in inside ir35 roles you can not claim any expenses at all. So what gives?

northernladuk
8th January 2018, 09:03
Both statements are kind of correct in as much as they both state you can claim IF you not under SDC. Problem is it's highly likely that any PS contract won't pass an SDC test ergo you cannot claim.

mudskipper
9th January 2018, 11:12
The role is with MoD, via parasol umbrella. They clain I can claim expenses if I am not subject to SDC in my contract.



As far as I know this is not the case and if you are in inside ir35 roles you can not claim any expenses at all. So what gives?

If you are operating via a limited company, you cannot claim if IR35 caught.

If operating via an umbrella, you cannot claim if subject to SDC (IR35 doesn't apply, as you are an employee of the umbrella)

However, if you are not subject to SDC, then the role should be outside IR35 - so if the MoD are advertising it as inside, then SDC must be present or the MoD have got it wrong.

psychocandy
11th January 2018, 11:11
As others have said, if its public sector inside IR35 then you can pretty much forget about expenses. Umbrellas wont entertain it anyway.

As I've said before, its a double whammy for public sectors now.

1) Increased tax means they pretty much need to up their rate by 35% to account for. If they don't then they cut down the available resource pool who will take 35% less than a non-PS outside IR35 role.

2) If you do the mon-fri thing then if its inside IR35 then petrol/hotels etc now come out of your pocket and there is no tax saving. Again, possibly rule out resources who are not local.

And HMRC say its had no effect? Know for a fact that my current client cannot get contractors even though they did hike their rates. Rate is ok but not brilliant but just not worth spending £200 a week or more on hotels/travel.

Rob1959
26th January 2018, 14:20
We are all aware IR35 is restrictive, but has it been tested whether IR35 is a Restrictive Work practice? Especially as it doesn't apply to all Contracts. I have had to turn down an IR35 Contract in Portsmouth because I cant recover the monies to cover hotel costs. However, someone who lives in the area who does not face such costs could take on the contract. Is this not some form of Discrimination?

I appreciate that others may have well looked at this issue from this view point, but it is something I intend to pursue. All comments are very welcomed

psychocandy
20th March 2018, 09:19
We are all aware IR35 is restrictive, but has it been tested whether IR35 is a Restrictive Work practice? Especially as it doesn't apply to all Contracts. I have had to turn down an IR35 Contract in Portsmouth because I cant recover the monies to cover hotel costs. However, someone who lives in the area who does not face such costs could take on the contract. Is this not some form of Discrimination?

I appreciate that others may have well looked at this issue from this view point, but it is something I intend to pursue. All comments are very welcomed


Hmm not sure you could call it discrimination. On what basis? Geographyism. Discriminination based on where someone lives....

But you're personal situation/costs etc is of no relevance to anyone.

I do agree though. IR35 gigs can now be the sole preserve of local candidates - suits me where I am now.