expense claims

[Billabong]

Hi,

I have moved to the UK to work on a contract. I believe from my understanding that I would be considered as a non domiciled resident (and paying local taxes) and was wondering if expense claims like travel costs to the UK; Rental Accommodation / Hotel costs; food etc are all valid ?

I had a friend who also moved to the UK, claimed the above while he was here for the first 24 months. I am using the same accountancy firm as he did, but my accountant doesn't really have any answer, and his logic doesn't make sense. From what I have read from the hmrc website its all not that clear.

Just to give further background, my limited company was formed before I started my contract, hence I didn't come to the UK first looking for work.

I did speak to another accountancy firm about the above and they thought the expenses were all fair, in fact their website details these expenses for overseas / non domicile contractors.

Thanks

[radish2008]

I think the rule is that you can claim any listed expense as long as it is incurred wholly in the operation of your business. I claim travel to and from London yet I don't claim for lunch or closthes as those are disallowed. SJD have a downloadable list of allowable expenses that seems to cover what's allowed and what's not allowed. On the other side of the coin you're running your own business, you're accountant doesn't run it.

[Billabong]

What about accommodation ? The accountant says these are all personal.

Well if I have a contract and I need to be in UK, I would assume that would be a business cost. He also further mentions that HMRC could question, why the company hired me and not someone local in the UK. If that is the case, why does the govt give out visas ?

Thanks

[radish2008]

What about accommodation ? The accountant says these are all personal.

Well if I have a contract and I need to be in UK, I would assume that would be a business cost. He also further mentions that HMRC could question, why the company hired me and not someone local in the UK. If that is the case, why does the govt give out visas ?

Thanks

Yes you're right. In terms of why the company hired you I would say it's none of his business. They hired you because you're the best person for the job. Have a look at the SJD website here :http://www.sjdaccountancy.com/docume...o_Expenses.pdf for a great doc on what can be claimed and what can't.

[stek]

What about accommodation ? The accountant says these are all personal.

Well if I have a contract and I need to be in UK, I would assume that would be a business cost. He also further mentions that HMRC could question, why the company hired me and not someone local in the UK. If that is the case, why does the govt give out visas ?

Thanks

Find a new accountant.

[Billabong]

Do you have any recommendations, I am already using the one mentioned in this thread....

Thanks

[Wanderer]

I have moved to the UK to work on a contract. I believe from my understanding that I would be considered as a non domiciled resident (and paying local taxes) and was wondering if expense claims like travel costs to the UK; Rental Accommodation / Hotel costs; food etc are all valid ?

"Non domiciled" has a special meaning in UK law, I don't think you can claim to be non-dom in your situation because you will be living and working here. It's only really for people with incomes of >£100k from offshore interests when they don't bring that money into the UK. However, you could ask about relocation expenses but I think that may be pushing it. Generally you can only claim for accommodation if you are working here while maintaining a home in another location.

Some accountants are more conservative than others. One accountant told me I could claim whatever the hell I liked but if HMRC caught me taking the piss then I would have to pay it all back, plus interest and penalties. I guess you could hunt around until you find an accountant who tells you what you want to know and go with them but I'd ask them to backup what they tell you with references to HMRC's guidance on what's claimable. If the accountant are any good then they will be able to back up what they are telling you (be it conservative or liberal) with pointers to the HMRC website.....

[Greg@CapitalCity]

Judging from your username, you have come over from Australia. Welcome aboard! The rest of my post will assume you're from Oz - if not apologies.

If you look at travel costs first of all - which is easy. Travel costs can be claimed on all business related journey. So is travel from Oz to London a business trip? I think the premise here would have to be that you were living in Australia working through your new UK limited company, then a contracting opportunity comes up in London, so you travel here to see it through. If you weren't working using your UK limited company in Australia though, it would be a tough sell justifying your travel claim to the HMRC. What date were you made a Director, what date did you sign the London contract, and what date did you leave Australia? If they are all around the same date, you are probably on shaky ground - the HMRC would just view this on the facts - if your business is not based in Australia, and you currently don't live in Australia, then its not a business journey.

So the next option is to claim for relocation costs, from Australia to London. However you still need to convince the HMRC that up until the point you moved to London, you were running your UK limited company from Australia. Still a hard sell.

Did your friends expenses get audited by the HMRC? If not, he may feel that that the travel expense is therefore allowable, but it probably isn't.

Accommodation is the same. If you can justify the journey from Australia to London as a business expense, then all subsequent subsistence and accommodation expenses are also allowable. But again, I think you would struggle to show that the trip from Australia to London is a business journey.

There are accounting firms who say these costs can all be claimed....maybe they try to hide it within their Travel & Subsistence dispensation, but with the HMRC taking a closer look at those these days, I suspect the offerings will slowly peter out. Maybe your circumstances are different from what I have assumed, let me know if so, and we can see if there is another angle this can be viewed from.

As for

He also further mentions that HMRC could question, why the company hired me and not someone local in the UK.

- What the......???

[Brussels Slumdog]

Back home for the weekend

I claim expenses from Brussels to London each week and one of the criteria is that I have to go home every weekend so as long as you went back to Australia each week end then you can claim expenses of living in the UK during working hours.

[JamJarST]

I claim expenses from Brussels to London each week and one of the criteria is that I have to go home every weekend so as long as you went back to Australia each week end then you can claim expenses of living in the UK during working hours.

Surely you going home every week is not a hard and fast rule though and you could stay in Brussels on occasion. Doesn't help the OP I know.