Claiming accommodation expenses.

**ASB** · 3 June 2006, 13:01

Originally posted by jbmac7788

I’m planning to move back home to sunny Birmingham. My contract will continue to be in London for the next 6 – 9 months.

I was thinking of renting a room in a shared house from Monday – Thursday in London. Can I claim this as an expense?

Thanks
John

Yes, if you have a permanent residense elsewhere. You can also claim £5 per night with no receipts for pesonal incidental expenses.

**jbmac7788** · 6 June 2006, 21:33

Thanks for that ASB. Much appreciated.

John

**XLMonkey** · 7 June 2006, 12:48

not quite as simple as that...

Unfortunately, it's not quite as simple as that... (I know a couple of people who were caught out on this, to their cost)

your right to reclaim travel and subsistence expenses without paying tax depends on your Declared Place of Work. The Revenue don't care if you have moved your home, they only care if you have moved your work.

You can find out where your Declared Place of Work is using the HMRC guidance here.

http://www.hmrc.gov.uk/employers/ebi...-travel-05.htm

The key issue for you is likely to be the 24-month rule: if you have been contracting in London for >24 months then you may be in a spot of bother. You need to read it carefully and see whether or not it applies. If it does apply, then you will need to spend 6 months or more working outside of London before you can claim travel and subsistence expenses to go there again.

In this case, if you were previously able to claim travel & subsistence from your home to your client in London; then you can continue to do so when you live in Birmingham.

However, if you were not able to do so when you lived in London, then moving to Birmingham has no effect on the rules, you still can't claim it back.

**ASB** · 7 June 2006, 13:06

Originally posted by XLMonkey

Unfortunately, it's not quite as simple as that...

Fair shout. However what is key is whether the London gig is the permanent workplace.

I didn't really clock the word "back" in the original post. However the op is *probably* ok.

Assuming the permanent workplace is the home - wherever they are currently living - then it will be OK. Generally this is considered the case, the key is that "substantive" duties are performed there (not the same as substantial although the IR do sometimes try and argue that). The active management of the business will normally cover this.

Claiming accommodation expenses.