Temporary Workplace

[Ollie V.]

Hello everyone,

I’d really appreciate some clarification on the rules around temporary workplaces.

I have a client who is the sole director of his own limited company. He’s currently working on a single project for one customer, and it will run for less than 24 months. He’s used the CEST tool, which confirmed he is outside IR35.

From time to time, he needs to travel to the client’s office. This means he incurs both travel and subsistence expenses.

Here’s where I want to make sure I’ve got it right:

• BIM47705 suggests that for traders, these expenses are not allowable if there’s a normal pattern of travel.
• But under EIM32080, if an employee attends a workplace for a task of limited duration (less than 24 months), it is treated as a temporary workplace.
• And EIM31837 goes further to say that an employee at a temporary workplace can claim relief for accommodation and subsistence.

So my question is: am I correct in thinking that the EIM “temporary workplace” rules apply here, given that my client is technically an employee of his own limited company, even though he is also the owner?

 

[GLAbusiness]

It is important to differentiate between the rules for the client's own employees and the position of the service provider company. The director of the service provider company is an employee of the service provider, not an employee of the client.

It is quite normal for a company like this to need to send employees to other locations

You say he only visits the client from time to time. To me this does not sound like a temporary workplace

Through my own limited company I provide a service to a client. When I negotiated to contract with the client I built the average cost of travel and accommodation into my day rate. So, I don't even claim expenses from the client.

Disclaimer: I am not an expert in this field

 

[MyAccountantOnline]

Hello everyone,

I’d really appreciate some clarification on the rules around temporary workplaces.

I have a client who is the sole director of his own limited company. He’s currently working on a single project for one customer, and it will run for less than 24 months. He’s used the CEST tool, which confirmed he is outside IR35.

From time to time, he needs to travel to the client’s office. This means he incurs both travel and subsistence expenses.

Here’s where I want to make sure I’ve got it right:

• BIM47705 suggests that for traders, these expenses are not allowable if there’s a normal pattern of travel.
• But under EIM32080, if an employee attends a workplace for a task of limited duration (less than 24 months), it is treated as a temporary workplace.
• And EIM31837 goes further to say that an employee at a temporary workplace can claim relief for accommodation and subsistence.

So my question is: am I correct in thinking that the EIM “temporary workplace” rules apply here, given that my client is technically an employee of his own limited company, even though he is also the owner?

If the director is an employee then yes EIM32080 will apply.

You'd be best liaising and working with your clients accountants to ensure what the specific circumstances are for this client. I am assuming you are acting as a bookkeeper for the client.

 

[UK Contractor Accountant]

This means he incurs both travel and subsistence expenses.

Who is paying for the t&s?

The Director or the Directors company?