Transport for a Contractor

Transport for a Contractor

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Hi,

If a self employed contractor is doing work for a company but does not have transportation.  Is the company allowed to provide any mode of transportation while the work is carried out?  If so what are the tax implications?

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By DMGbus
17th Nov 2011 14:00

delete see next box instead (cannot edit out some text!)

ore likely to be an emplop andf and

 

 

 

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By DMGbus
17th Nov 2011 13:59

"Part and parcel of organisation"

In terms of employment status "part and parcel of the organisation"  is a phrase best considered in these circumstances.  

Treating a "self-employed" worker as if he/she was an employed worker by providing him/her with transport or tools is particularly helpful for HMRC if they wish to demonstrate that a worker is "part and parcel of the organisation" so probably best to make a charge for the transport to make the contractual terms less employee-like.     There is also a (n HMRC) school of thought that by providiing transport other than to an employee you are "entertaining" that worker and thus liable to extra VAT costs (see VAT notice 700/65).
 

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Replying to readmylips:
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By Lorraine Meeks
17th Nov 2011 16:58

Thanks

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