UK Citizen resident abroad contracting in the UK - Expense reimbursement questions

[Kenny@MyAccountantFriend]

[LIST=1]

1. Can I get my monthly rent expenses reimbursed by MyCo Ltd
2. Can I get my monthly travel expenses reimbursed by MyCo Ltd
3. Not so important - Can I get my daily food costs reimbursed by MyCo Ltd or do the normal rules apply of 5 - 10 hours £5 subsistence and 10 hours £10 and if working evening as well £x (I don't know how much it is)

For question 3. I know that if the answer is yes to 1 and 2 then 3 would be a given. Of course all of these are valid up to 24 months as far as I understand it and from then on it becomes your normal place of work and you can no longer get all of the above fully reimbursed.

I haven't found anything on the web so far on a situation similar to this. I've asked my accountant and he's asked around the office and he's getting conflicting answers. SOme say yes, some say no.

The residence you rent in the UK would become your primary residence for UK tax purposes and as such the rent would not be an allowable expense for the company as it would if your family home was in a different part of the UK.

As a result of the property becoming your primary residence the travel to and from your family abroad would also not be allowable for the company as an expense.

If you had setup a company in your home country and then worked in the UK the costs may have been allowable depending on that countries tax rules, but you would likely still be liable to UK corporation tax on any income generated in the UK.

Travel from the UK property to your client site would be allowable per the temporary workplace rules though and the same for subsistence claims.

[Raygo]

Thanks Kenny

The residence you rent in the UK would become your primary residence for UK tax purposes and as such the rent would not be an allowable expense for the company as it would if your family home was in a different part of the UK.

Strange that if I'm already in another part of the UK my rent would be reimbursable. I guess it's because you're paying double rent or something.

If you had setup a company in your home country and then worked in the UK the costs may have been allowable depending on that countries tax rules, but you would likely still be liable to UK corporation tax on any income generated in the UK.

Fair enough, happy to pay all taxes that need to be paid obviously, would have just been nice to be able to have these reimbursed.

[WTFH]

Strange that if I'm already in another part of the UK my rent would be reimbursable. I guess it's because you're paying double rent or something.

No, it's because you'd already be tax resident in the UK.

[Raygo]

Well, thanks for all your responses I'll continue researching this further and if I find any more useful info I'll post it here.

Cheers