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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4973
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I have worked as a partner in LLP for 6 weeks between middle

Resolved Question:

I have worked as a partner in LLP for 6 weeks between middle of february up to 5/4/2015.
They have paid me salary as FULL amount without deduction of NI or income tax. I have received a notice from NI to pay them or through my tax return my NI contribution. I also need to know what expenses I can claim for as to do this work I left my home in London and lived in a BB and later a rented accommodation, travelling to london to and back frequently.
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.
Hello and welcome to the site. Thank you for your question.

Please clarify for me

I understand this to be a position as self employed
What is your normal place of work ... do you work from home?
Was this assignment temporary?

Many thanks
Customer: replied 2 years ago.

The contract is on a locum basis, i.e. i understand is a temporary position.

The company i joined is Riverside LLP via NLManaged group of company, assuring me that I will hold my self employed position. Obviously, I can come to my present place of work in Sc**thorpe daily from London, I had to stay in BB and in a rented flat, visiting London over the week ends.Therefore I stay in sc**thorpe monday to Friday and visit London over the free week ends.

Riverside LLP is advising me to calculate out my expenses my self as a self employed and submit the return but HMRC is not accepting my position as a self employed being a member of LLP, they say that you should have been paid NET salary, company taking out your profit/loss/expenses?

Expert:  taxadvisor.uk replied 2 years ago.
Thank you for your honest reply.

I have to be honest in my response.

You have to establish with HMRC what your status was for this assignment as there appears to be a disagreement in whether you were an employee or self employed. A member of LLP is deemed self employed for taxation purposes. The share of profit is taxed as self employed.

You will have difficulty in claiming overnight allowances if it is deemed your main place of work was Sc**thorpe in which case commuting costs (travelling to your main place of work) would be disallowable for tax purposes.

If you can establish with HMRC that you were self employed in every sense and that Sc**thorpe was a temporary posting, then you should be able to claim subsistence expenses as outlined in HMRC manual ref EIM05231 here.

http://www.hmrc.gov.uk/manuals/eimanual/eim05231.htm


You will also find a link to this helpful

http://www.maxfaxsho.co.uk/Subsistence-allowance


I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Customer: replied 2 years ago.

If I read your advice, does it mean that;

1; I can not claim for my stay in BB for first 2weeks?

2; that I can not claim rent and council tax for my flat during my stay in Sc**thorpe?

3; I can not claim travelling expenses to travel between sc**thorpe and London?;

4; That the only thing I can claim for is Subsistence as per HMRC guidelines?

Expert:  taxadvisor.uk replied 2 years ago.
Thank you for your reply.

As I stated earlier, it is important to get the status established.

Once it is established that your posting was to a temporary workplace, then you should be able to claim BB for the whole duration.
You should be able to claim travelling expenses as you could argue they are not travelling costs from home to main place of work.
You should be able to claim subsistence.
You won't be able to claim rent and council tax on rented flat.

I hope this is helpful.
Customer: replied 2 years ago.

Thanks for your patience and expertise,

last couple of queries1; How do I establish that my posting was temporary, what is a definition of temporary worker?

As per changes in HMRC rules from 6/4/2015, Riverside LLP has dissolved my partnership, saying that I can not maintain a self employed position any more and advised me to join an Umbrella company for getting my salary. This umbrella company has promised me and so far proving right by taking expenses deductions as a self employed, including my rent!! Are they right or wrong in legal terms?

Please reply, this should conclude our discussion hopefully.

Expert:  taxadvisor.uk replied 2 years ago.
Thank you for your relpy.

There is a difference between temporary worker and temporary place of work.
If Riverside LLP has offices at more than one location and you are asked to move from one location to another then it is your temporary place of work.

You are engaged by the organisation say at head office and then asked to go and work at a different location for a short while- this would be temporary.

I am vary of umbrella companies. If they have written agreement from HMRC that expenses identified would be deductible against self employed earnings, then please make sure you have a copy for future reference.

I hope this is helpful.
taxadvisor.uk and 2 other Tax Specialists are ready to help you
Customer: replied 2 years ago.

please be kind to send me a copy of questions and answers to mail mail id *****@******.*** for record purpose.
Thanks.
AS

Expert:  taxadvisor.uk replied 2 years ago.
I can't send you informaation by email.. we are not allowed to send emails to customers... sorry!.

You can copy and paste my responses from here... they will remain here.

I hope this is helpful.

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