Renting flat while working away from home

[BolshieBastard]

If there as an intention for the contract to last longer than 24 months in the first place, then I'd agree but as the proposed contract is for 24 months anyway, then I don't think its unreasonable.

HMRC can argue all they like of course but I'd imagine the onus on them would be to prove that there was an expectation of the contract to last longer than 24 months if you have a signed contract stating less. That wouldn't be hard of course if you were pulling a fast one (a quick email to ClientCo would probably drop you in it).

On the other hand, a 24 month contract is largely meaningless given you can be binned at any time more or less so you could equally argue why sign such a long contract - why not 6 months or 12 months?

Yes I can appreciate and understand that. Im not trying to be argumentative, Im just now ultra cautious as Im caught up in BN66 and seen the tactics hmrc can and do use.

Im just putting it out there that despite current legislation, hmrc are quite successfully blurring the lines between evasion which we all know is illegal and, avoidance which while totally legal, hmrc are trying to stamp out.

Similarly, I would not touch Government contracts now because of their 'off payroll' FUD. Despite people having their contracts amended to be inside, I would not doubt in future years, Government \ hmrc will see this as evasion \ avoidance with commensurate results.

This is just my opinion \ ultra cautious approach though!

[Forbes Young]

I have a 2 year contract 100 miles away from our family home. I don't fancy living in a hotel for 5 days a week and would rather rent a flat.

Do I claim the rent as a personal expense from my Ltd? I won't be able to pass it onto client but their day rate is good enough to cover it. If I claim as an expense is it a tax deductible expense?

Alternatively, can the Ltd co rent the property for me and again treat it as an expense before tax?

With thanks

The temporary workplace rule is specifically for travel to a main work location. The whole basis of this legislation is to give workers some relief when working at a temporary workplace. Beyond 24 months, this workplace is no longer temporary but classed as permanent, unless less than 40% of the time is spent on that specific workplace. In my view, the legislation doesn’t cover rent costs/hotel costs where accommodation is rented near the project of work because your home is too far away to commute and you will therefore be involved in incurring an incremental cost. Accommodation and receipted evening meals can continue to be claimed via your company as a tax allowable expense. Always best to get the rental agreement in your company's name.

[TheCyclingProgrammer]

In my view, the legislation doesn’t cover rent costs/hotel costs where accommodation is rented near the project of work because your home is too far away to commute and you will therefore be involved in incurring an incremental cost. Accommodation and receipted evening meals can continue to be claimed via your company as a tax allowable expense. Always best to get the rental agreement in your company's name.

I'm confused - you appear to be both saying it isn't allowable and is allowable.

OP isn't commuting, they are staying near their client's co on business.