2 year rule - includes International travel ( to UK ?)

[josepi90]

Hi,

Hope i can get some advice here - searched the past threads but could not find any simliar posts..

I'm appraching the end of a two year contract in the UK, paid via one of the major UK umbrella companys, and have been claiming travel costs, and various other expenses ( meals, accomodation etc).

Been discussing another ( though this time unplanned) contract extension with the client, as a project needs completion, which will take me over the two year period and im told end the expense claims facility

Difficulty is that i live in Holland, fly 4 times monthly, rent a room here during the week etc etc so have expenses of around 1K per month..

Does this 2 year ruling apply to people travelling internationally to the UK ? All my tax for this contract is paid to the UK gov ( though for the past 10 years was all paid in NL) though officailly i still live there, the address on my contract is also in Holland.

any help greatly appreciated..

regards
J

[NotAllThere]

It used to be the case (1996!) when home to office expenses were generally disallowed for contractors, that this wasn't the case when the office was in another country. Have a look at the HMRC website - they may cover this still.

>edit Look at this and specifically this link It seems to indicate that if you are not domiciled in the UK, you're entitled to relief for five years, and you can even bring spouse and kids twice a year and get relief on that.

Many European countries do allow "travel to work" expenses generally. If NL do this, then perhaps you can get a deduction on their side - I assume you're doing a tax return for the NL authorities, and using the double taxation laws?

Another possibility would be to ask your client for a (off the top of my head) £400/month - £100/week - £2.50 /hour rate rise to cover the extra tax you have to pay.

[josepi90]

Many thanks for the reply + links - will pass them on to my accountant and see how things turn out..

cheers
joe