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After some guidance please!!

New client of mine is IR35 public sector. He believes he can enter travel expenses on his SA return as he predominantly works from home, with the occasional journey to the 'principal' place of work. 

I told him he has no entitlement to claim travel & subsistence - particularly to the office address in his contract but he is adamant. Any advice? Am I understanding the rules correctly?

He is also claiming VAT on broadband, etc at home & the fuel element of his mileage. Guessing he needs to be adjusting his next return to repay all that VAT? My IR35 experience is limited but want to learn & give sound advice going forward as anticipate more similar business. Massive thanks in advance!

Matt Smith, Bergsmith Accountancy Services Ltd


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By adf2410
25th Mar 2019 10:50

Just think of it as if it were a normal employment and apply the same rules. So commuting isn't allowed, but business mileage is. The issue you're having with this client is whether it's commuting or business mileage, so just resolve that in the same way you would in an employment case - what does the contract say about where his official place of work is?

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to adf2410
25th Mar 2019 12:48


what does the contract say about where his official place of work is?

Don't see why that matters - what matters is where he actually works.

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By Matrix
25th Mar 2019 14:32

Why would the expenses go on the SA? Wouldn't they go in the limited company and create a loss which can't be used? I don't see why he can't offset the VAT if they are business expenses.

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