July 10, 2023
5 Minutes

What business travel expenses can contractors claim?

Mike Crocker

Business travel expenses are a common part of the job for contractors, especially those who work in the consulting or service industries. Contractors can usually claim most of the same expenses as a full-time employee, but there are a few important differences that should be noted.

First it is important to identify if your are actually an employee under the IR35 rules or whether you are truly a contractor.

Second step is confirming the work you are doing is a temporary place of employment. If this is the case, you can claim travel and subsistence expenditure. One of the key identifiers of whether the contract is temporary is if the length is over 24 months. As soon as the contract exceeds 24 months or it is clear it will then you can no longer claim travel and subsistence.

Whether you are:

1.    Claiming 45p a mile on your business travel (for the first 10,000 miles)

2.    Claiming reduced mileage rate for your company car

3.    Bus tickets, train tickets and other public transport

4.    And the associated subsistence

This stops when it is clear the contract will exceed 2 years.

How can Gravitate Accounting Help?

As a business we are in regular contact with you ensuring you are tracking contract lengths. IR35 is a complex area which is constantly changing, we can also review your status and ensure you are operating as tax efficient as possible

Mike Crocker

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