"B&B" business expense contracting away from home

[quackhandle]

I have a gig on outskirts of Brum, I live mon-thurs at the in-Laws who live only a few miles away. They don't "charge" me for bed & board but I was wondering if they should be.

Mother in law has even bought a reciept book.

Do they need to be a business though?

If I did claim this as a business expense is there financial gain?

ta

qh

[northernladuk]

I have a gig on outskirts of Brum, I live mon-thurs at the in-Laws who live only a few miles away. They don't "charge" me for bed & board but I was wondering if they should be.

Mother in law has even bought a reciept book.

Do they need to be a business though?

If I did claim this as a business expense is there financial gain?

ta

qh

They can 'earn' up to 4250a year on the rent a room scheme tax free.

Linky to HMRC

You are allowed to claim a nominal amount for renting from friends without a reciept inc some food. I don't think it's much, just to cover the favour 20-30 quid tops I seem to think. You can also treat them to a meal as well or something..

I also seem to remember a thread where someone stated they stayed at friends and claimed the mileage instead up to the 40p cut off bt was shot down becuase they won't have the VAT receipts to prove they did it if they got investigated

[quackhandle]

Nice one, cheers.

qh

[Boo]

[FONT="Trebuchet MS"]I have a gig on outskirts of Brum, I live mon-thurs at the in-Laws who live only a few miles away. They don't "charge" me for bed & board but I was wondering if they should be.

I'd say they should be charging you rent, especially if you operate via your own Ltd Co.

Do they need to be a business though?

If I did claim this as a business expense is there financial gain?

They don't need to be a business, as northernladuk posted, they can earn £4250 tax free under the rent-a-room scheme.

The financial advantage of paying rent is that it comes off your (companies') income when tax is calculated. You still have top pay the money out though...

Boo