Limited company - rent as an expense

[rutar]

Apologies, I guess I havent been clear. When I say he's assuming he's outside IR35, he (we) know that most probably he's inside, but operating on the assumption tha he wont be investigated. We know IR35 is a huge issue but hardly no of anyone to have been investigated and made to cough up the correct tax

[LondonManc]

Apologies, I guess I havent been clear. When I say he's assuming he's outside IR35, he (we) know that most probably he's inside, but operating on the assumption tha he wont be investigated. We know IR35 is a huge issue but hardly no of anyone to have been investigated and made to cough up the correct tax

Advertising on a public forum that a Wales-based doctor doing locum work, probably inside IR35, on three sites in Essex isn't exactly playing Dr Inconspicuous though, is it?

[northernladuk]

Apologies, I guess I havent been clear. When I say he's assuming he's outside IR35, he (we) know that most probably he's inside, but operating on the assumption tha he wont be investigated. We know IR35 is a huge issue but hardly no of anyone to have been investigated and made to cough up the correct tax

Bearing in mind you've no idea of how many people have been investigated and how much they have to pay up then that's a really bad line to take. In two or three years time if he does get caught he's gonna lose is home and and everything. Please feel free to update us when it hits.

And if you are playing that game why are you even bothered what the answer to your question is. Just stick it all through the company. You'll never get found out. :

[Hobosapien]

And if you are playing that game why are you even bothered what the answer to your question is. Just stick it all through the company. You'll never get found out. :

So true. You can claim for anything if not bothered about the risk of being caught.

I know it is (or was) legitimately possible to claim rent (and associated costs such as council tax/leccy/water) for a temp property near client instead of hotel/b&b but I last did it before the more recent T&S/IR35 changes so would be a lot more wary these days.

[Pondlife]

Hi,

A friend is a doctor who normally lives in Wales, he has now moved to Essex (exclusively for work purposes) to locum at a hospital and now rents a private property whilst still paying a mortgage on his property in Wales. He has formed a limited company and the query is will he be able to claim rent as an expense? (the assumption is he is working outside IR35)

Thank you

So it's his primary residence now? Or does he travel back to Wales for the weekend. Every weekend.

If he's using it at the weekends it's his primary residence and so not a valid business expense IMHO.

Edit: As for the "it'll never happen to me" approach to IR35 I assume he has insurance to cover the legal costs of an investigation regardless of the result?

[eek]

So it's his primary residence now? Or does he travel back to Wales for the weekend. Every weekend.

If he's using it at the weekends it's his primary residence and so not a valid business expense IMHO.

Edit: As for the "it'll never happen to me" approach to IR35 I assume he has insurance to cover the legal costs of an investigation regardless of the result?

I hope he doesn't... I would really dislike to see my insurance premium wasted on blatant IR35 abuse cases like this one...

[blackeye]

How much to locum doctors earn? Just out of curiosity...

[northernladuk]

How much to locum doctors earn? Just out of curiosity...

Around 11k a year. HTH

[Dominic at Fox-Bartfield]

Hi,

A friend is a doctor who normally lives in Wales, he has now moved to Essex (exclusively for work purposes) to locum at a hospital and now rents a private property whilst still paying a mortgage on his property in Wales. He has formed a limited company and the query is will he be able to claim rent as an expense? (the assumption is he is working outside IR35)

Thank you

Hi

There shouldn't be a problem assuming he still maintains his primary residence in Wales. There could be implications if he stays there on weekends/days off this is not wholly and exclusively business related.

1. Ensure the tenancy agreement is in the companies name and paid from the company bank account.
2. Ensure the tenancy agreeement is short term (most assured shorthold tenancies are - hence their name).
3. Tell him to appoint an accountant to advise on these queries.

Regards

Dom

[blackeye]

Around 11k a year. HTH

More than me. I'm still stuck on £8.5k.

TBH I'm glad to hear that the people who actually add real value to society and save the lives of our loved ones earn more than us.