A friend of mine works on a subcontract basis supplying business, admin and accounts expertise. He works from home 2 or 3 days a week and travels to the company that he works for 2 or 3 days a week as applicable. He only works for the one company but they prefer him to subcontract his services. He travels by train on each occasion some 230 miles a round trip so pays considerable travel expenses in doing the job. His agreement with the company is that he travels to the office/factory 2 or 3 times a week. Can he claim his travel expenses as a business expense? Does this change any if he is reimbursed for his travel? Thanks
UK Can this travel be claimed
- Thread starter AnthonyG
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Becky
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If it's his business base, then no...
BIM37675 - Wholly and exclusively: duality of, or non-trade, purpose: non-travel topics: accommodation and subsistence: sub-contractors
You may also want to be careful of IR35 here.
On a separate note, it sounds like the company contracting his services could be wrongly classing him as a sub-contractor when he sounds more like an employee. HMRC are quite strict about this, and it can run up massive historic tax and NIC charges plus penalties (for the company).
BIM37675 - Wholly and exclusively: duality of, or non-trade, purpose: non-travel topics: accommodation and subsistence: sub-contractors
You may also want to be careful of IR35 here.
On a separate note, it sounds like the company contracting his services could be wrongly classing him as a sub-contractor when he sounds more like an employee. HMRC are quite strict about this, and it can run up massive historic tax and NIC charges plus penalties (for the company).