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Relocation costs for contractor working from home

If an OMB working from home relocates, can relocation cost be borne by the company.

I have been contacted by a potential new client. He's a contractor working through his own company, so the company's registered address is his home address, there are no premises. He wants to move to be nearer his current client and I'm guessing he thinks it'll be a better location for future contracts. He wants to put £8,000 relocation costs through his company on the basis that he has to relocate as his company is relocating. But, obviously, the 2 aren't separate. To me it's pretty clear he can't, but would welcome comments.

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17th May 2018 23:56

If he’s not moving for a specific contract (ie lives in Newcastle, wins a contract in London - unreasonable commute), then I’d say no. If he is, I’d probably allow, or at least read up some more.

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18th May 2018 13:01

Not a technical reply, but it smells a bit.

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20th May 2018 21:37

When I first read this question, I wondered about the IR35 position. Reading it again, I still wonder.

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to Tax Dragon
21st May 2018 06:59

I can see why you raise the IR35 issue. It does seem odd to move to be near a contract, it almost suggests the contractor anticipates the contract to be a permanent role. As I've only had one brief initial conversation with this potential client, I haven't got into any detail yet. However, I don't think the moving, in itself, would be an issue for IR35, but it may be an indication of the nature of the contract.

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