Claimable expenditure - working in London and home in Germany

**malvolio** · 11 February 2018, 19:04

It's very simple. Any expense that is "wholly, necessarily and exclusively" for business purposes is claimable or tax relief from your personal income. Routine flights into and out of London for a working contract, accommodation and meals would meet that requirement unless you can use them for an extended stay, for a weekend trip for example, in which case you would need to pro rata them somehow. Which is why you need to be careful about flat rental, for example, since HMRC will argue that you have the use of the flat outside your work days so it fails the above requirement.

I assume you've read the guides on this site and the IPSE Guide to Freelancing, which between them will cover all the things you don't know you don't know.

Apart, that is,form the German tax position, about which I have no clue but no doubt someone else around here will.

And get an accountant until you know what you are doing.

**northernladuk** · 11 February 2018, 20:36

Lots of basic information in the newbie guides to the right or just Google it.

**jmo21** · 12 February 2018, 08:55

Originally posted by markyp47 View Post

Hi there

I'm new to contracting and have just landed a contract in London. I'll be moving to Germany very soon to live with my partner who has moved there to work on a scientific research project. I'm trying to weigh up what expenses I can claim through my limited company and which ones I can't. The HMRC website is not straightforward at all but clearly I don't want to fall foul of any laws or regulations. I'll ask some specific questions and maybe one or more people can help. So when I move to Germany.

1. I plan to fly to fly into London on a Sunday eve and then back again on Thursday eve - can i claim for Easyjet flights ? circa £120 a week?

2. I don't know whether it would be better to stay in hotels or rent a flat via my company - my gut instinct is hotels in case something happens with my contract and it ends early (otherwise I might be saddled with a minimum period lease that I can't get out of) if i stayed in a hotel could i claim back through my company (most likely around £80 ish a night 4 x nights a week). If I did a company let - are there any particular pitfalls and could I claim through my company?

3. Is there anything else I could claim in these circumstances - like meals etc. ?

4. Oh yes if I'm living in Germany do i have to register with them for tax purposes - I'm assuming all my tax liabilities will be in the UK?

Thanks in advance for your help.

Cheers
Mark

As you appear to have not much knowledge on the subject yet, and just in case you don't realise, you effectively save 20% of the expense amount via your corporation tax bill - your company is paying the rest out of your contractor income.

**BlasterBates** · 12 February 2018, 09:16

Your tax liabilities are in the UK. A UK salary needs to be declared in Germany but won't be taxed. Your UK earnings are only used to calculate the tax rate on any German earnings, i.e. if you earn 50000-60000 in the UK then you would be taxed on any further earnings in Germany at the top rate of tax (45%). If you earn dividends then those are taxable but at a flat 25% rate but they take into account tax paid in the UK.

**oilboil** · 12 February 2018, 10:09

How would the 24 month rule work here?

I am presuming (but maybe wrong) that the OP lives in London already and has previously been engaged in contracts within London. Now whilst they may not have claimed expenses for this travel (or maybe they have) they have still been working at a temporary location (City of London for instance) for the last 24 months say. Does this not immediately negate the opportunity to claim travel, accommodation and subsistence expenses back to London now as the only thing that has changed is the contractors home address and not the "locality" of the temporary office?

It feels like one of those depends how you read it queries. Anyone else got any views?

**northernladuk** · 12 February 2018, 10:26

Originally posted by oilboil View Post

How would the 24 month rule work here?

I am presuming (but maybe wrong) that the OP lives in London already and has previously been engaged in contracts within London. Now whilst they may not have claimed expenses for this travel (or maybe they have) they have still been working at a temporary location (City of London for instance) for the last 24 months say. Does this not immediately negate the opportunity to claim travel, accommodation and subsistence expenses back to London now as the only thing that has changed is the contractors home address and not the "locality" of the temporary office?

It feels like one of those depends how you read it queries. Anyone else got any views?

Good point. The 24 month rule differentiates whether the clients site is permanent or temporary. IMO If he's still working in the same geographic location over 24 months then it's a permanent site and the clock will continue to tick.

**malvolio** · 12 February 2018, 10:42

Originally posted by northernladuk View Post

Good point. The 24 month rule differentiates whether the clients site is permanent or temporary. IMO If he's still working in the same geographic location over 24 months then it's a permanent site and the clock will continue to tick.

Ah but - I think he can demonstrate that his journey has changed significantly...

However it s a good point and needs professional advice.

**markyp47** · 14 February 2018, 00:25

Thanks everyone for your advice

Hi - just wanted to say thanks to everyone who has taken the trouble to reply. That has helped me a lot. Cheers Mark

**oilboil** · 14 February 2018, 10:17

Originally posted by markyp47 View Post

Hi - just wanted to say thanks to everyone who has taken the trouble to reply. That has helped me a lot. Cheers Mark

I'm not sure this poster is real.... No-one ever takes the time to come back and thank people

Claimable expenditure - working in London and home in Germany