Expenses for Working Abroad.

[prozak]

this is a regular topic and I've read all I can on here as well as all the HMRC stuff.

I just want to get specific clarity if possible.

I have the opportunity to work in the Carribbean for 6 months and since it is impractical to travel there every monday I will end up renting a house/flat.

What are considered OK expenses.

My flight there?
My rent?
all living related expenses such as utilities?
What about a phone and mobile phone over there?
Eating at restaurants?
What about groceries if i choose not to eat out?
taxis seems pretty straight forward?
What about a car lease for 6 months?

Any others I should be claiming?
What if my family wish to visit ? - that sounds wrong to me...


Thanks.

[prozak]

pop.

[Pondlife]

It's all in here

Special rules for employees travelling to work outside the United Kingdom: contents page

[Pondlife]

Any others I should be claiming?
What if my family wish to visit ? - that sounds wrong to me...


Thanks.

You might be surprised. I think it depends on whether your duties are wholly or partly performed abroad.

See here

http://www.hmrc.gov.uk/manuals/eimanual/EIM34003.htm

[TheFaQQer]

You might be surprised. I think it depends on whether your duties are wholly or partly performed abroad.

See here

Travelling expenses: employees working abroad: expenses that may be deducted: example

Foreign travel rules: duties performed wholly or partly abroad: travelling expenses of the employee's family is the page to read - two trips per tax year, if you are abroad for 60 days or more.

You can claim the flight, but no accommodation or subsistence when they get there, and if they are staying in the same flat as you, adjust your claim for that period accordingly. Check up on the duality of purpose rules.

[prozak]

It's all in here

Special rules for employees travelling to work outside the United Kingdom: contents page

aha! Thanks.

Duties wholly abroad.

Only reason I am asking is that I do not believe I will be non-resident.

[prozak]

So a follow up.

I assume it does not matter if I use my company Visa card for these expenses?

What about paying for things out of petty cash? I.e taking cash out of ATM's. Cos I'd rather not have a load of small expenses and getting charged fees every time I make a transaction abroad.

[prozak]

Foreign travel rules: duties performed wholly or partly abroad: travelling expenses of the employee's family is the page to read - two trips per tax year, if you are abroad for 60 days or more.

You can claim the flight, but no accommodation or subsistence when they get there, and if they are staying in the same flat as you, adjust your claim for that period accordingly. Check up on the duality of purpose rules.

Hold on. I read that as:

I can claim my accom and subsistence when they arrive.
I cannot claim theirs.

I can still claim my accommodation when they arrive as long as I didnt get a bigger place to accommodate them.

[TheFaQQer]

Hold on. I read that as:

I can claim my accom and subsistence when they arrive.
I cannot claim theirs.

I can still claim my accommodation when they arrive as long as I didnt get a bigger place to accommodate them.

Foreign travel rules: duties performed wholly abroad: foreign accommodation or subsistence costs and expenses says

If accommodation or subsistence is provided partly for another purpose, for example, private use for a holiday, you should limit the deduction to the amount included in earnings that is properly attributable to the business purpose.

I would argue that using a flat that you rented for business purposes to put your family up so that they don't have to stay in a hotel would fail duality of purpose, because it is being used for private use as well now.

[SueEllen]

So a follow up.

I assume it does not matter if I use my company Visa card for these expenses?

What about paying for things out of petty cash? I.e taking cash out of ATM's. Cos I'd rather not have a load of small expenses and getting charged fees every time I make a transaction abroad.

Use the cheapest way to get currency out whether it's your business card or personal cards. Make sure you keep all receipts.

As you will be away for months you will find that you are allowed your rent and a daily living allowance for food. This means you won't be claiming for individual meals apart from your days of travel.

There is a booklet on HMRC's website which gives Civil service rates that you can claim world-wide. It's on this page - Employment income: scale rate expenses payments: accommodation and subsistence payments to employees travelling outside the UK

I suggest you read everything people have guided you to, then confirm with your accountant that you are allowed to do all this.