Deduction for travel to a temporary workplace

Deduction for travel to a temporary workplace

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I've a new client who's operating through a limited company.

IR35 is not a problem.

He's a project manager and works all over the UK.

The contract from the end user company to his own company (the intermediary) states that he is based in Leeds even though that's a few hundred miles from where he lives.

I'm wondering, as far as mileage claim is concerned and accommodation paid for while away from his home town can we use the temporary workplace rules Per IEPA2003 for all places of work including Leeds?

The period of contract is for less that 2 years but there is a section in ITEPA that says if the whole job is at this workplace even if less that 2 years it will not be a temporary workplace.

I find this one a bit of a grey area.

I know when I worked through an umbrella company a few years ago on contracts I was able to claim my mileage, so each contract must have been a temporary workplace.

Is there some sort of dispensation for this.

Comments would be greatly appreciated

Replies (5)

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By Novakova
15th Nov 2013 22:44

Deduction for travel to a temporary workplace
See also HMRC booklet 490 Employee Travel, para 3.18 Fixed-term appointments. It would seem that home to Leeds travel in this case is not allowable for tax purposes.

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By stephenkendrew
16th Nov 2013 09:39

I disagree

The only time the restriction in paragraph 3.18 would apply is if the contract in Leeds the only work he expects to do through his limited company?

I presume he expects to have, or has had, other contracts. If so the engagement in Leeds is not the only workplace he expects to have throughout the period of his employment (with his own limited company) and the travel is, therefore, allowable.

 

 

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Replying to Cactuscat:
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By Albie
18th Nov 2013 12:50

What you say makes sense, but I dont think its clear cut.

stephenkendrew wrote:

The only time the restriction in paragraph 3.18 would apply is if the contract in Leeds the only work he expects to do through his limited company?

I presume he expects to have, or has had, other contracts. If so the engagement in Leeds is not the only workplace he expects to have throughout the period of his employment (with his own limited company) and the travel is, therefore, allowable.

 

 

What you state makes sense, but I just want to be certain because, its doesn’t seem clear cut.

My thinking was, If the client is site based and to a temporary workplace, or attending a temporary workplace other than permanent workplace, then the travel cost / mileage is allowable.

I suppose the permanent place of work is his registered office / home? therefore when he leaves that place his travel would be deductible.

I wonder is that how umbrella companies are able to claim mileage - do they claim that their employees are site based?

I just don’t want to leave any doubt here because the repercussions are the mileage and the treatment of the accommodation then follows that of the travel

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By Steve Kesby
16th Nov 2013 13:03

I agree...

... with Stephen.

The point to then watch is that the next contract isn't also in Leeds, so you don't fall foul of the insubstantial change in the place of performance of the employment duties rule, that treats both workplaces as one.

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Replying to Subcontractor-accountant:
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By Albie
18th Nov 2013 12:49

Agree.

Steve Kesby wrote:

... with Stephen.

The point to then watch is that the next contract isn't also in Leeds, so you don't fall foul of the insubstantial change in the place of performance of the employment duties rule, that treats both workplaces as one.

Yes, I agree Steve.

I want to be certain that the temporary status of this workplace will not be challenged.

 

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