Contract work and travel expenses..help

[redyork]

Hi there,

Some advice is needed. My wife and I are based in North Yorkshire and she is an ops specialist. She has been discussing possibly of taking on a short term 8-10 week project for a company based in London next year.

She is registered as self employed and wanted to simply invoice the company a daily "consultantcy fee". At the end of the project she would then apply her costs (travel and subsistance) then work out her tax liability for the project on her SA tax return next year - Earnings minus travel, subsistance etc.

However, the company are talikng about taking her on as a short term contracted employee and therefore would pay her via PAYE. If this materialises what can she do in terms of adjusting her accounts to take travel and subsistance into account, she's looking at approx £300 per week so pretty substantial.

Obviously she's keen to ensure everything is thoroughly recorded and accounted for so any advice would be greatly appreciated. Many thanks.

J

 

[paultnl]

I would suggest using an umberella company like Parasol

 

[Zeno]

What are the travel costs in relation to?

If this represents her travel from home to London then these will not be allowable for tax purposes as an employee. (Edit: assuming that this is to a fixed place of work)

 

[elaine@cheapaccounting]

I would suggest using an umberella company like Parasol

the OP says his wife is being paid through the client's payroll