I live in Wales and work in Scotland for a blue-chip company under PAYE. Can I form a limited company, pay my PAYE earnings into it to claim my expenses (like fuel, as I average 1,100 miles a trip), and lodgings? 

Arthur Weller replies:  

In the scenario you have described, I believe that you would be caught by the ‘IR35’ rules. And under the IR35 rules, the intermediary company is allowed to claim expenses that would have been allowable to an employee of the client. It seems to me that what you are describing is 'home to work' travel expense and return (ordinary commuting). These are not allowable expenses for an employee. See HMRC’s internal Employment Status manual at ESM5520.