Writing off accomodation expenses

[Gordon Gecko]

I am based in London but have been offered a contract in Scotland. For the duration of the contract, London would remain as my primary residence, if I rent a place in Edinburgh, can I use this as a valid business expense?

Any help greatly appreciated. The Inland Revenue website isn't overly helpful. Thanks!

[The Lone Gunman]

I am based in London but have been offered a contract in Scotland. For the duration of the contract, London would remain as my primary residence, if I rent a place in Edinburgh, can I use this as a valid business expense?

Any help greatly appreciated. The Inland Revenue website isn't overly helpful. Thanks!

Look up the 2 year rule on this site.

Conditions: As soon as you know you will be on site for 2 years you can not claim travel or accom.

As long as you rent the flat solely for business purposes then it is 100% claimable. If you use it for personal use then you should pay tax as a percentage of use as a BIK. You can also claim travel. Either cost of train/plane fare or 40p per mile should you drive your own car.

As ever: I am not qualified to give this advice.

[Gordon Gecko]

Most helpful! Thanks squire!

[mictech]

As long as you rent the flat solely for business purposes then it is 100% claimable. If you use it for personal use then you should pay tax as a percentage of use as a BIK.

So if your playing away from home and using the flat you should inform the taxman the BIK, but make sure make sure the missus doesn't see you SA return.

[PAG]

I thought rented accomodation can not be claimed as an expense. even if it is for business purpose.

[Bluebird]

I thought rented accomodation can not be claimed as an expense. even if it is for business purpose.

why not ?

It's a legitimate business expense isn't it ?

The way to look at is as follows:

1. Your Corp Tax is based on what profit you make
2. Your profit is the difference between what you get paid for anf what you pay out
3.What you pay out are Business Expenses - i.e. Salary, IT, Travel and accommodation if that is whats required in order for you to get revenue.

Simple eh ?

[PAG]

Bluebird
I agree with you and I argued the same point. However, there are 2/3 contractors here who asked their respecive accountants and all said that hotel is fine but not the rented accomodation.

[boredsenseless]

Bluebird
I agree with you and I argued the same point. However, there are 2/3 contractors here who asked their respecive accountants and all said that hotel is fine but not the rented accomodation.

Thats my view as well thats why I use hotels even though they are a little more expensive

[ASB]

Bluebird
I agree with you and I argued the same point. However, there are 2/3 contractors here who asked their respecive accountants and all said that hotel is fine but not the rented accomodation.

Personally I've had rented accomodation and charged absolutely everything. Survived investigation with no problems. However:-

- You do need an alternative residence which you would normally be using
- Allocate some of the cost for private use. I took 10% of the total claimed as a BIK.

[cykophysh39]

I am working in Dublin, and just recently queried the deduction with my Accountants (SJD) , and the response was that

You can put the cost of the room in ........ under Accommodation. If the only reason you hire the room, is to enable you to do your consulting work for ........... in ........... , you can claim the full cost of the
room.