What can I claim - who is right and who is wrong

[iceman]

Hi,
please could anyone help? I am new to contracting and receiving many conflicting pieces of advice.

My personal situation is that I am based within the UK and currently working as a sole trader on a 220 day NATO contract at SHAPE (Mons). This is regarded as international soil and I have been informed that is regarded as external to the EU (if this is true or not I do not know).

I have been informed by my accountant to operate as a sole trader, but would it be more beneficial (financially) if I operated from a ltd company.

Also I have been informed by the same accountant of the following:

if I rent accommodation within Belgium I will be unable to claim business expenses for my rent, meals and travel to and from work is this true?

However, I have also been informed that if I can secure long term hotel accommodation that that will be claimable with meal and travel expenses etc.

I have also been informed that I cannot claim the travelling expenses home to the UK and back every 2 to 3 weeks, please could you inform me of the validity of this?

I am also trying to find out if I am outside of IR35, hopefully the following may help.

I am not entitled to any of the benefits offered to the client employees.
My hours and working days are fairly flexible at client sites, but are also restricted by local security restrictions.

I am not entitled to the use of the facilities offered solely to local employees by my client.

I ask these questions after talking to many contractors in similar positions and finding that their responses conflict with that of my accountant. Although I wish to be tax efficient I do not want to be regarded as tax avoiding.

Any and all help is greatly received and appreciated.

iceman

[nobody here but us chicke]

Get a better accountant ?

I can see that your circumstances are a little unusual (with a location that may be outside the EU despite being in it) and that may require specialist advice.

The stuff about accomodation is imho bollocks. You are only there to carry out a contract, ergo it is an expense required to fulfill the contract.

Is your accountant a local bod who deals mainly with sole traders / partnerships by any chance ?

Now having stirred, I hope someone who knows what they are talking about will come along and give the real info.

[tim123]

My personal experience of working on a Nato site is that the "international status" of the employees only applied to the seconded employees. Local employees and sub contractors are regarded as living and working in the host country and have to account for taxes locally.

tim

[Daywalker]

I am in the same position Iceman but I am based elsewhere within NATO, but am awaiting a transfer to Mons soon.

I personally use a managed company that was recommened by the agent and it is working out well. If you look at the permanent contract jobs offered by NATO they are all delcared tax free, you would definitely benefit taking advice from a specialist in that area.

[Spartacus]

I am based on the Moon.

HTH
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