Can I claim Caravan stay as an expense?

[new2c]

It turned out that the start date of my new contract coincided with the half term dates, the little one doen't want to sit at home and as I had to pay for temporary accomodation anyway for myself (hotel, B&B etc..), I decided to book a Caravan for the working week a few miles away from the client's offices.

Can I claim part of the cost of caravan stay as an expense? The caravan was shared with my family so can I claim 33% of the price paid?

Moreover, the VAT invoice for the caravan stay is only in my name and doen't state that anyone else was included in the booking.

My accountant suggests that it is not safe to even claim a partial cost (e.g. 33%) as HMRC may challenge this.

Moeover, I have claimed mileage to and from the Caravan location to home (company's registered address) and apprantely this seems to be okay according to my accountant. My family were with me in the car.


So, going by the same logic, I can't claim for mileage as well, or can I?

[philip@wellwoodhoyle]

It doesn't meet the required test unfortunately. For you to be able to claim it as a valid expense from your company, it needed to have been "wholly, necessarily and exclusively" for the business purposes. By your family staying in it with you, you haven't met the test.

There's a very recent court case to confirm, being the Healy case, where actor Tim Healy rented a flat in London for somewhere to stay during a theatre run, but he also had guests who stayed over in it occasionally. That duality of purpose meant it wasn't "exclusively" for business purposes, and he was denied any tax relief. Specifically, he asked for a proportion of the cost to be allowable, but even that was rejected.

[northernladuk]

Maybe your accountant is worth their money after all!

Why do you come on here and ask a stupid question when it's been explained to you by your accountant by the way? At least they will have answered it without laughing at you.

[TykeMerc]

As Philip@wellwoodhoyle pointed out, there's very recent case law on exactly this point, you will be a fool if you ignore the correct advice your accountant gave.

[northernladuk]

As Philip@wellwoodhoyle pointed out, there's very recent case law on exactly this point, you will be a fool if you ignore the correct advice your accountant gave.

He thinks his accountants are useless remember.....

[SpontaneousOrder]

Does that mean when i meet pretty girls in Nandos while having my dinner in the evenings, and bring them back to my TravelLodge, I can't put it through the books?!

[northernladuk]

Does that mean when i meet pretty girls in Nandos while having my dinner in the evenings, and bring them back to my TravelLodge, I can't put it through the books?!

Pretty girls in Nando's give receipts???

[new2c]

My question is also about claiming the mileage if you read it again.

This forum can get really cuddly at times but I don't mind.

[northernladuk]

I think they are giving you the benefit of the doubt with the mileage. Who is to know who was with you on the journey and it just disappears in with all your other mileage. The rest will stand out like a sore thumb.

Get a new accountant you trust and start speaking to them.

[new2c]

Thanks NLUK!!