Permanent Place of Residence

[xoggoth]

Re: Expenses

I find that, despite the standard six months contract, I can almost always talk landlords into accepting something shorter in practice. Never not got my deposit back yet.

This could be because of my charm, or more likely, in the sort of places I tend to rent as a dedicated cheapskate, they are just really pleased to get somebody that is not on drugs.

IR35 has nothing to do with whether you can claim this expense.

[rknight73]

Spooky

Ronald,

I rent a place in London where I live during the week (contract is in the City) but family etc. is in Cardiff - so my situation is exactly the same as yours except for the destinations being reversed.

I also claim the rent back against tax - my accountant has said that this is fine even though I live with folks/girlf in Cardiff between contracts.

What do you do I'm looking to move back - can I have your contract?!

[clement]

Re: Expenses

OK kids, here 'tis. Thanks to Bradley on the other thread.

From the Revenue's Schedule E Procedural Manual:

To qualify for a deduction the [accomodation] subsistence costs must be attributable to the business travel in the sense that they are costs incurred in travelling that are additional to any costs that the employee would incur if it were not for the business travel.

Ronald's accomodation costs are additional. The woman in their example makes things even clearer:

She has no permanent home...This is the only accommodation available to her.

Ronald has permanent accomodation available to him in the form of his family's house in London. Therefore, his accomodation costs in Cardiff, be they hotel or rented flat (assuming it's solely for business purposes) are fully deductible.

Unless anyone wants to point to any official doco that contradicts this...

[Ronald]

Re: Spooky

Sorry for the delay in replying rknight73 but I had to play cricket. We won incidently. You can have my contract if you can bullsh*t extremely well and pay me a loads of cash.

Clement... you are the cross post fiend. Super effort that. You should be working for the IR.

[xoggoth]

Re: Spooky

We all knew and said that but the definitive quote of clause and paragraph is worth applauding. Clement yeh!!!!!!

[blondiebeeb]

Re: Spooky

The umbrella company is right-you can only claim tax relief on the second place of residence in the UK where you are paying rent, the bills or a mortgage on the first place of residence.

If you think about it, this makes sense, as otherwise everyone could get tax relief on their first place of residence

[fiddleabout]

Re: Spooky

> they are just really pleased to get somebody that is not on drugs.

xoggoth - I'd strongly recommend you don't mention that you post here. I'd especially recommend that if, like the war, you accidentally mention it you certainly don't let slip your id.

[clement]

Re: Blondiebeeb

Sorry Blondiebeeb, but did you read this whole thread? Or more specifically, the links I posted above? On what basis do you (and ContractorUmbrella) make the statement that rent/ mortgage/ bills are required to be paid for the Revenue to deem a property your home?

You've missed the point when you say "everyone could get tax relief on their first place of residence". We're talking here about what test the Revenue applies to your first place of residence when allowing you to claim relief on business accomodation under Schedule E.

According to the their own documentation, if you have to pay for accomodation whilst travelling for business, and this expenditure is additional to your normal outlay for living accomodation, the claim is legitimate. The level and nature of your normal expenditure not irrelevant.

In Example 1 of the examples I cited earlier, the woman has no permanent home, therefore she incurs no additional expense and can't claim. In Example 2, the man does, even though he's paying nothing on his home while he's away, so he can claim.

Quite frankly, I'm sick of people making declarations (and indeed, umbrella companies making policy) based on hearsay. Don't make blanket statements without backing them up. Point me to a legal precedent or any official tax documentation that supports your arguement.

[blondiebeeb]

Re: Blondiebeeb

8.9

"where the employee has tos tay away from home while on the course-for the additional cost of staying away from home. Employees will be entitled to relief for this only if they have on-going financial commitments at their home address, for example, the cost of maintaining their own home or of paying rent to retain accommodation."

at the end of the day, you will only know if you check with the IR.

[4Contractors]

Re: Blondiebeeb

Clement - would you mind telling us who you are ?

We had a bit of a conflict on our contractor website with a chap called Dave Lehman, who works for one of the umbrella companies and to be honest your posting style is remarkably similar.

Please don't take offence if you aren't Dave Lehman by the way