Contracting question: Can I claim hotel and dinner expense for 6 month contract?

motorguy

Kokolot wrote: »

This has been a learning experience for me on my first contract.

I suddenly had to leave my full-time job and found lucrative work through contracting.

And thanks to you guys I am learning about these things in more detail. Maybe you were in similar position too when you were knew and had to learn this all.

When my contract is up for negotiation I will ask for more because:

A) I am away 3 days a week
It is coming out of my expenses so from the rate there is less money in my pocket

My approach will be to ask:

A) If I can work from home 2 days a week and leave early on the day I drive back from the location (will make up the extra 2-3 hrs when I stay there for 2 days)
C) Up my rate so it meets my expenses
D) Or ask them to make my contract from home and they can pay for my hotel, subsistence, travel expenses.

And if they don't agree I will leave.

As above, dont shoot the goose thats laying the golden eggs. You've got a good day rate there, you've already been told that you're on the equivalent of around £80K if you were in an equivalent PAYE role.

The reason we contractors get paid so much is because we are seen to be a flexible skilled workforce. I personally wouldnt go in making rash demands. Working from home one a day a week is a big help and wont cost them anything - the other suggestions i think will pretty much go down like a fart in a spacesuit.

motorguy

Wyndham wrote: »

The reason the work is lucrative is BECAUSE you are expected to have additional expenses. I suspect if you try any of the above they will thank you for your time and your services will no longer be required.

I just finished a contract which had considerable expenses. Once I'd dealt with them it meant that I was only just over the rate I'd have got for similar permanent work closer to home (but there isn't similar permanent work closer to home). I see that as the trade off, and while the headline rate can look fantastic, the reality isn't necessarily so.

It should still be very lucrative for the O/P to be staying over on a day rate of £400 a day, bearing in mind he / his company will be paying tax at a very low rate too.

Back of a fag packet calculations would say that after expenses are taken out, he'd need to get around £70-80K in a permanent role to bring home as much.

motorguy

jobbingmusician wrote: »

Agreed. Don't cut off your nose to spite your face - £400 pd is a great rate for a first contract. And in subsequent contracts you can quote this rate without mentioning that it wasn't plus expenses, and move up the ladder.

I have every confidence that you should be able to get your daily expenses down well below £50 in total, for bed and the day's food. Nowadays £50 isn't an unusual amount to spend on commuting!

Wholly agree. Lots of options to keep costs down.

Also worth remembering costs come off your pre-tax day rate, not out of your net pay, so £60 on a hotel probably only costs your £35-40 of your net pay equivalent.

Slinky

motorguy wrote: »

I've never yet seen a contract whereby negotiating the client paying my expenses is an option. Its obviously going to make you more expensive than someone who is local down the road and i'd say most clients would find it off putting.

Likewise i negotiate my rate depending on my skills relative to the job, not based on the location.

I pitch at what i think i can get away with, frankly.

I know minimum day rate for it to be worth my while getting out of bed and its really not hard to tot up £50 a night x 4 (and usually a flight in my case as i'm based in NI) and that rarely varies by more than a few £ either way.

It does seem that the O/P is trying to minimise costs / tax burden rather than be on the back footing because he suddenly found out he has accommodation to pay.

I guess it may vary depending on industry, contract and what you can negotiate. My OH's last 2 contracts have involved living away from home and both companies have paid for his hotel expenses on top of his day rate.

motorguy

Slinky wrote: »

I guess it may vary depending on industry, contract and what you can negotiate. My OH's last 2 contracts have involved living away from home and both companies have paid for his hotel expenses on top of his day rate.

I've not seen it in IT and in IT typically you'd be working on customer site. Its typically your responsibility to get there not theirs.

IF a company required me to work specifically on one of their sites OR their site was fairly remote then i'd expect expenses - in fact i've had expenses for that. Job role in Birmingham or Manchester or London or wherever - not really the clients concern what it costs me to get there.

I'd typically negotiate on day rate, not expenses.

Whats your OHs area?

Slinky

motorguy wrote: »

I've not seen it in IT and in IT typically you'd be working on customer site. Its typically your responsibility to get there not theirs.

IF a company required me to work specifically on one of their sites OR their site was fairly remote then i'd expect expenses - in fact i've had expenses for that. Job role in Birmingham or Manchester or London or wherever - not really the clients concern what it costs me to get there.

I'd typically negotiate on day rate, not expenses.

Whats your OHs area?

Management Consultant