Renting studio flat not using hotels

[thewanderer]

Hello,

I am working away from home on the client site, 3-4 hours from home.

I can get a flat (small studio) with all bills for around £500 per month. If I were to use hotels this would cost me around £1400/ month. If I were to drive down and back every day (apart from being impractical), I could charge my company £2700/ month (150 miles each way, £0.45/mile, 5 days a week).

My accountant is trying to tell me that I can't put the flat rental costs through the business,as I would have "access to the benefit" of a small studio flat at the weekends, even though I would rather be at home with my family. It is genuinely the size of a single garage, bed, cooker, bathroom. Like a hotel room, but cheaper.

He is also saying that because the contract states that the work is to be undertaken at their site, that this could be "inside IR35". I work my own hours, do not attend staff briefs, do not have access to the office apart from when employees are there etc.

[NCOTBAC]

This has been covered many times and there are plenty of posts here discussing this. The problem is the Sat and Sunday so you could just claim 5/7ths of it. As I say, your answer is in these threads below.

renting flat site:forums.contractoruk.com - Google Search

The bit about it being on site is rubbish. It's a very very very minor flat at best but sometimes the work just has to be at the clients. If you work in SC/DV environment, you are data centre support guy you need to be there etc.

You do need to get your contract reviewed by a specialist though. The accountant does your books, that it. They aren't IR35 specialists. Speak to QDOS, Baur and Cottrell and others and get every contract reviewed.

I'm assuming your accountant isn't a contractor specialist one either so if both these are the tip of the iceberg I'd strongly suggest you review your accounting options. The contractor specialist ones also offer FreeAgent which is great. If yours doesn't then another good reason to look around.

[thewanderer]

many thanks, I think I will look for a new accountant.
Sorry for being crap at searching.

[thewanderer]

The contractor specialist ones also offer FreeAgent which is great. If yours doesn't then another good reason to look around.

Is FreeAgent that good? CUrrently I just use Excel but realise it is crap.

Any recommended contractor specialist accountants?

[NCOTBAC]

Is FreeAgent that good? CUrrently I just use Excel but realise it is crap.

Any recommended contractor specialist accountants?

Yes it is.

Sticky at the top of this part of the forum. .

https://www.contractoruk.com/forums/...-requests.html

[ladymuck]

There are other online accounting systems. Free Agent is good but then so is Sage One (which I use) and QuickBooks (which I used back in pre-cloud days). Xero is probably a bit OTT for most but is well respected.

Do your research, in conjunction with your accountant if you have one, to determine which is best suited to your needs.

[Chris@Intouch]

The advice being given above is correct, for an expense to be allowable it needs to be wholly and exclusively for the purpose of trade - this is the only reason you are renting the flat. Therefore the cost can be treated as a business expense, to avoid any doubt as to a personal benefit claiming 5/7ths of the cost is an appropriate approach.

IR35 is determined by three main factors when looking at your working practices. Working solely at your client's site in itself does not indicate IR35. The three factors that are looked at are:
- personal service
- mutuality of obligation
- control
Please also bear in mind that you only one of these factors need not be present for the whole engagement to be outside IR35.

[Brussels Slumdog]

How long would your rental contract be for?
What if you sign a rental agreement for 6 months and the client cancels your contract next week?

Sent from my SM-A320FL using Contractor UK Forum mobile app

[thewanderer]

How long would your rental contract be for?
What if you sign a rental agreement for 6 months and the client cancels your contract next week?

Sent from my SM-A320FL using Contractor UK Forum mobile app

6 months. Contract is for 4 months. Done 1 month already.

It’s a risk.

[NotAllThere]

6 months. Contract is for 4 months. Done 1 month already.

It’s a risk.

I was in a similar position. There was such a turnover of contractors I found it easy enough to get someone to take over the lease.