Renatal Accomodation Expense - please reply

[irate36]

Hi

I came over from Brussels to Edinburgh to work on a contract. I was told by the umbrella company that I could claim rental accommodation. I have been audited by revenue and they want to deny the claim. The umbrella companies do not return my calls or email. I maintained a residence in Brussels and had no one living in it aside from my family. Initially I commuted between Brussels and Scotland regularly and later I began to spend most of the week here.


Before I name and shame the umbrella company, could one for you le me know whether the expenses are valid and on the off chance that you are very knowledgeable could you give the specific part of tax legislation to back this up so that I am able respond to revenue.

[Lucifer Box]

Unfortunately, it's little to do with your umbrella, as you made the expenses claim, not them. There is little they can or will tell you.

Have you asked HMCR why they are disallowing the claim? Without knowing that there is little you, never mind us, can offer in the way of advice.

[Fleetwood]

I think the Revenue are right here, although morally they aren't. It's because the place you're renting en Ecosse is your primary residence in the UK, and therefore cannot be considered as a business expense. I know, your residence is in Bruxelles, but the UK taxman looks at an UK situation.
The same thing happened to me the other way round when I went to Belgium. I can't claim for my flat, because it's where I live in Belgium, whereas the contractor opposite, who owns a flat in Antwerp, but who rents in Brussels for the length of his contract, can claim his rent as an additional expense. Also, I'm taxed as single here, even though I'm married, because Mme. Fleetwood et les filles live in France.
The way round this crappy legislation would have been for you to give another UK address to your umbrella, sufficently far away from your place of work for the new flat rental to be considered as a justifiable expense.
Maintenant je crains que ça ne soit trop tard.

[VectraMan]

As I understand it it needs to be a genuine Mon-Fri let. If you can stay on non-working days, it doesn't count.

[irate36]

Thank you for your replies.

1) I hold the umbrella company fully responsible as the claims were under their full advice and their dispensation. Although I may be liable for the damages. They have misrepresented me to secure me as a client, and not taken any responsibility for the consequences of their advice.

The fact that the company does not return my emails or calls or that of HMRC, shows what a reprehensible bunch of no good niks they are.


Fleetwood - your situation seems dodgy to me , I am sure there is some European legislation which says you cannot be discriminated agains on the basis your family resides in a different EU country. I am sure if you find an honourable and skilled tax advisor (does this exist) she/he can rectify the situation.

HMRC did ask me how many days of the week I stay here. All they sent me was some legislation about

Section 99(1) ITEPA 2003 EIM11342
Which talks about agricultural workers, lock gate keeprs , stewards and the like. I think this legelation refers to permenant accomodation, rather than a second residence.

[Lucifer Box]

Unfortunately, the umbrella's dispensation from HMCR is only for them not to have to check your receipts, not for you not to have receipts or for them to check their validity (or otherwise).

Most umbrellas are held in poor regard, as a cursory scan of this board will reveal.

My personal opinion is that they are a waste of time and money unless you only anticipate contracting for a very short period of time (a few months) and then intend going permie again.

[boredsenseless]

As I understand it it needs to be a genuine Mon-Fri let. If you can stay on non-working days, it doesn't count.

Depends - if you can evidence it as only used during work periods and not outside that and that the cost of renting en masse was less than a series of small lets.

However if you only rent monday-friday (and therefore cannot be residnet there during the week) the bods at HMRC can't claim its your residence.

[Wildybeast]

why dont you check into a cheap hotel or bed and breakfast, Lodgings in edinburgh must be £400+ a month. some hotels will give you an excellent rate if you book en-block, ie holiday inn in edinburgh was £60 a night, which i got for £32 per night room only if i paid up front for the night, then with the tax back on that the room costs no more than renting accomodation, and you are not subject to utility bills erc

[boredsenseless]

The fact that the company does not return my emails or calls or that of HMRC, shows what a reprehensible bunch of no good niks they are.

I can't believe that they aren't taking HMRC calls, useless they may be downright idiotic they aren't

[irate36]

Great news just spoke to HMRC and they are willing to close off the case. I think I just caught them on a good day. I am vey happy, and did not expect a result.

Thank you fo all your answers I will post a message now warning people not to use the 360 Group. 3 Sixty group are really bad.