Accommodation advice

[niaz7]

Hello,

Working as PAYE Contractor, I need some help with the following 3 options. Although I will be working 5 days, I will be going home most weekends.

1. I can get a room share for say £300 to £350 per month all bills included, but I cannot get a tenancy agreement or a breakdown of charges in writing (7 days a week) - so I will pay for this out of my own pocket!

2. Or £500 to £600 a month for room share, with all bills included and with an AST agreement for 6 months, rent component is say £420 a month (7 days a week), I claim 5 /7 on rent, £300 per month - Can I claim anything for Utility bills?

3. Stay in B&B, £900 per month (5 days a week) claim 100% back.

Any other options (besides hotel or renting a flat)?

With option 1 and 2, I have the flexibility to stay over the weekends which I like and also I can bring all my stuff.

With option 3, I don't have to pay out any extra out of my pocket.

Cheers

Niaz

[TheFaQQer]

Working as PAYE Contractor, I need some help with the following 3 options. Although I will be working 5 days, I will be going home most weekends.

If you are operating via an umbrella company (I assume that's what you mean by a PAYE contractor??), then you are bound by your employer's expenses policy. If there is something that they will not allow you to claim, but HMRC would, then you need to reclaim that when you do your tax return.

1. I can get a room share for say £300 to £350 per month all bills included, but I cannot get a tenancy agreement or a breakdown of charges in writing (7 days a week) - so I will pay for this out of my own pocket!

Why wouldn't you claim the expense through your employer? Get a receipt and claim the expense (subject to it being allowed by your employer). You have somewhere else that you are living at, so as long as you can show that it was a temporary arrangement, then I don't understand why you would pay for this yourself.

2. Or £500 to £600 a month for room share, with all bills included and with an AST agreement for 6 months, rent component is say £420 a month (7 days a week), I claim 5 /7 on rent, £300 per month - Can I claim anything for Utility bills?

If you aren't going to use the place on a weekend, then I would claim 100% of the cost back, unless your employer prevents this.

3. Stay in B&B, £900 per month (5 days a week) claim 100% back.

Any other options (besides hotel or renting a flat)?

mondaytofriday.com gives you a five day a week rental, so you would claim the whole lot. Some landlords will let you leave your things there over the weekend - mine did when I did it in London, but since I was never there on a weekend, I claimed the whole thing as a business expense and paid it out of the business account directly.

[sal]

Working as PAYE Contractor,
...
3. Stay in B&B, £900 per month (5 days a week) claim 100% back.
...
With option 3, I don't have to pay out any extra out of my pocket.

If by PAYE contractor you mean your are contracting through an Umbrella company then you really need to read how expenses work.

Claiming £900/m doesn't mean free money, they will be deducted from your own earnings reducing your take home pay significantly. The only benefit of claiming expenses as a contractor ltd or Umbrella is reducing your tax bill. Very roughly calculation is that if you pay and claim £900/m for accommodation will reduce your take home pay with £720/m so option 1) and 2) end up cheaper.

[niaz7]

Yes with an Umbrella company.

They company have made it clear that they want to see an signed agreement and a copy of my Utility bill for my own house (which I can get).

Also with Option 2, the Utility bills should be paid for as this is no different to what is provided in the B & B.

Also staying into B & B provides me little flexibility with what I want to do, I have a lot of stuff with me and need somewhere where I can stay weekends, sometimes two weeks at time.

[TheFaQQer]

2. Or £500 to £600 a month for room share, with all bills included and with an AST agreement for 6 months, rent component is say £420 a month (7 days a week), I claim 5 /7 on rent, £300 per month - Can I claim anything for Utility bills?

If you will be arriving on a Sunday and leaving on a Friday, then you only have one day that you aren't using the place, so you could claim 6/7 if allowed by your employer.

[TheFaQQer]

With option 1 and 2, I have the flexibility to stay over the weekends which I like and also I can bring all my stuff.

Once you get to seven days a week, then you start having problems about it being a business expense.

[niaz7]

Once you get to seven days a week, then you start having problems about it being a business expense.

No, the most I would stay would be 2 weekends in a row, otherwise it most weekends at home.

Also, I agree about the £900 bill and expenses, that was just and example - I would always look at the best option and where possible try to get it cheaper.

I really like option 1, but don't know to get round it - I only want to claim what I am using for Business side.

[SueEllen]

I really like option 1, but don't know to get round it - I only want to claim what I am using for Business side.

Why can't you get an agreement with option 1? If you are a lodger there are lodger agreements you can get or if you are desperate the landlord can write one.

Just make sure the agreement states that you are allowed to stay Monday to Thursday for the given rate, and weekends cost extra.

[niaz7]

Why can't you get an agreement with option 1? If you are a lodger there are lodger agreements you can get or if you are desperate the landlord can write one.

Just make sure the agreement states that you are allowed to stay Monday to Thursday for the given rate, and weekends cost extra.

It complicated something to do with sub letting?

Anyway looking through all the options at the moment, so will need decide soon.