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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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.
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.
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.