Silly questions time

[KathyWoolfe]

I'm an inexperienced contractor - I'm in my second contract - so this will be a silly question.
I read on a particular umberella company's website that I can claim hotel bills etc while I am away from home.
I am living in a guest house (in a city which is not my normal place of residence) during the week while i'm at work and going home at weekends. I did this during my first contract and my accountants said that I could not claim these expenses and still be IR35 compliant.
Is this true?
Can I actually claim my hotel bills and expenses while living away while I'm at work?

[Cowboy Bob]

Yes you can claim those expenses, and you could have done for your first contract as well. IR35 doesn't relate to expenses at all, so obviously you had a poor accountant. I'd get on the phone and tear him/her a new one so at the very least, his/her current clients don't get shafted as well.

[KathyWoolfe]

Thanks, fortunately I have receipts but will I need them?

[Cowboy Bob]

Thanks, fortunately I have receipts but will I need them?

Yes, the tax man will want to see all receipts if you are ever audited.

[KathyWoolfe]

Yes you can claim those expenses, and you could have done for your first contract as well. IR35 doesn't relate to expenses at all, so obviously you had a poor accountant. I'd get on the phone and tear him/her a new one so at the very least, his/her current clients don't get shafted as well.

I'll give him the benefit of the doubt as when I got my first contract I was too concerned with setting up my company etc to really go into details about what I was entitled to.
Thanks for your help!

[timh]

Be careful.. If an accountant told me something as blatantly wrong as that, I'd wonder what else he was messing up..!