Accommodation

[nickh]

I'm a permie looking at going contracting and I'd appreciate your advice on accommodation, or more specifically how to pay for it.

Its highly likely that I will be staying away from home during the week (home at weekends) and my intention is to put the accom. cost onto the company credit card (I plan on operating as a ltd). As I'm paid I'll pay the card off so I don't incur interest charges and then claim the accom. back as expenses (I don't plan on staying with relatives etc. so no worries there).

Is this the best way to handle accom.? does anyone have any better suggestions?

Cheers, Nick.

[Pondlife]

If you're paying the accom with a company CC then YOU don't pay it off - Your Co pays it from the company account. If you pay with a personal CC then you pay it from your personal account and claim the money back from Your Co as expenses.

HTH

[nickh]

Maybe should have read my original post properly before pressing 'submit'...

I plan on paying the accom. with the coy credit card, paying the credit card off with the coy account and then claiming the accom. charges back against [the coys] tax [bill].

Is this possible?

(I am in the process of sorting out the accountant so will be asking him all of these exciting questions but wondered whether any fellow contractors out there already did this...)

Nick.

[Sockpuppet]

Hello,

Yes. Expenses lower profit which means a lower CT bill.

I would get a contract before an accountant. THere is no guarantee that you are going to find work unless your skills are in desperate need.

Cheers
Richard

[theemeestroo]

If the company pays the bill then you can't claim it back.

Either you pay out of your own account and claim the amount back OR your company pays.
I think the main thing you are after here is it doesn't matter which way you do it. Either way, your company pays for your accomodation as it is a valid expense.

[Pondlife]

Sorry must have misread.

As long as it's not your primary residence and costs are wholly occured from business use (i.e. it's not used by yourself or anyone else at weekends) - then it's fine for the business to pay for it with no BIK to yourself and can be deducted as a business cost.

Oh, as long as you don't know you're gonna be there for 24 months otherwise it is a BIK.