I've received an offer to contract on an ad-hoc basis across the country at my day rate + £95 a day 'travel expenses'.
I'm more familiar with all (reasonable) expenses covered or nothing when it comes to clients paying for travel, so I was trying to work out how much out of pocket me/MyCo would likely be under this arrangement (I'm based in Scotland and the work is likely to be primarily down South and considering the client I bet it'll include some work in London where £95 won't go far and out of pocket costs could be particularly high). Tried my accountant, but all I got out of that is an estimation that it'd be about 50/50 between me and the client at that rate and also (and this is where I'm baffled), a suggestion that I'd only be able to claim tax relief on the difference between what the client provides me towards expenses and the expenses cost (e.g. I sustain £200/day expenses, I'd be only able to get a max £20 or so off my CT bill, to cover the £105 'shortage'). Now, everything else I've read (and my limited previous experience in dealing with expenses) suggests that I'd normally expect to invoice the client £95 + VAT per day and then this would be just extra company revenue, treated the same as the day rate from my end, and I can do what I want with my books/accountant to mitigate the tax burden (claim all the relevant T&S off my CT and VAT bill at full rates etc). Obviously these views clash, so is anyone able to confirm?
I know expenses have on the whole been done to death on here and so before anyone gives me the usual - I've already searched the forum and read a number of relevant threads, had a word with my accountant, and read the relevant FAQs on here. I'm looking for a confirmation before I challenge my accountant, negotiate via the agent or perhaps even decide to go for another contract, possibly with a lower day rate, where potentially significant out of pocket expenses won't be applicable.
Thanks.
I'm more familiar with all (reasonable) expenses covered or nothing when it comes to clients paying for travel, so I was trying to work out how much out of pocket me/MyCo would likely be under this arrangement (I'm based in Scotland and the work is likely to be primarily down South and considering the client I bet it'll include some work in London where £95 won't go far and out of pocket costs could be particularly high). Tried my accountant, but all I got out of that is an estimation that it'd be about 50/50 between me and the client at that rate and also (and this is where I'm baffled), a suggestion that I'd only be able to claim tax relief on the difference between what the client provides me towards expenses and the expenses cost (e.g. I sustain £200/day expenses, I'd be only able to get a max £20 or so off my CT bill, to cover the £105 'shortage'). Now, everything else I've read (and my limited previous experience in dealing with expenses) suggests that I'd normally expect to invoice the client £95 + VAT per day and then this would be just extra company revenue, treated the same as the day rate from my end, and I can do what I want with my books/accountant to mitigate the tax burden (claim all the relevant T&S off my CT and VAT bill at full rates etc). Obviously these views clash, so is anyone able to confirm?
I know expenses have on the whole been done to death on here and so before anyone gives me the usual - I've already searched the forum and read a number of relevant threads, had a word with my accountant, and read the relevant FAQs on here. I'm looking for a confirmation before I challenge my accountant, negotiate via the agent or perhaps even decide to go for another contract, possibly with a lower day rate, where potentially significant out of pocket expenses won't be applicable.
Thanks.
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