Accommodation expenses for a new contractor

[apapadak]

Hello all,

I just started my first contract on the 19th of December in Manchester.
I come from Greece (where I lived before) and I have dual nationality; both Greek and Italian.

Nowadays, I am still living in a hotel but I plan to rent more permanent accommodation for the duration of the contract.
However, I've been informed by the accountant that handles my umbrella company that I cannot claim as expense the receipt from a hotel or from rented property *because* I don't own a property in the UK.

Is that possible? Any ways that I can pass that as an expense??

Thanks for any answer,
Anthony

[LisaContractorUmbrella]

Hello all,

I just started my first contract on the 19th of December in Manchester.
I come from Greece (where I lived before) and I have dual nationality; both Greek and Italian.

Nowadays, I am still living in a hotel but I plan to rent more permanent accommodation for the duration of the contract.
However, I've been informed by the accountant that handles my umbrella company that I cannot claim as expense the receipt from a hotel or from rented property *because* I don't own a property in the UK.

Is that possible? Any ways that I can pass that as an expense??

Thanks for any answer,
Anthony

Do you have a property in Greece or Italy? Are you planning on staying in the UK once this contract has ended or will you be returning to Greece/Italy?

[DirtyDog]

Any ways that I can pass that as an expense??

Ask your employer.

If they say you cannot claim it, then that's the end of it.

If you have alternative accommodation available, then it should be allowable, but it depends on what your employer says.

[apapadak]

Hello,

I have property in Greece but I haven't got any property in Italy.
Also, the passport I'm using here is an Italian one.

I'm not sure whether I can use the fact that I don't own property in Italy so as to claim any accommodation expenses here.

After this contract I will be returning to either one of these countries for holidays and from there I will pursue a new contract.

Thanks,
Anthony

Do you have a property in Greece or Italy? Are you planning on staying in the UK once this contract has ended or will you be returning to Greece/Italy?

[DirtyDog]

However, I've been informed by the accountant that handles my umbrella company that I cannot claim as expense the receipt from a hotel or from rented property *because* I don't own a property in the UK.

They are wrong - see Travel expenses: general: accommodation and subsistence: subsistence costs that are not attributable to the travel: no permanent home: examples

An employee of a German company is seconded to a temporary workplace in the UK for 15 months. He sells his flat in Germany and rents a flat in the UK. When he returns to Germany he will need to find himself a new place to live.

The rent of the UK flat is attributable to the business travel and a deduction can be given for the cost, see EIM31815.

Refer them to that page.

If they insist that they are right, then you will have to accept their expenses policy. You can then complete your self assessment to get back some of the money paid as allowable business expenses incurred.

[LisaContractorUmbrella]

Hello,

I have property in Greece but I haven't got any property in Italy.
Also, the passport I'm using here is an Italian one.

I'm not sure whether I can use the fact that I don't own property in Italy so as to claim any accommodation expenses here.

After this contract I will be returning to either one of these countries for holidays and from there I will pursue a new contract.

Thanks,
Anthony

If you are maintaining your property in Greece whilst you are in the UK i.e. you have not rented it out thereby covering your costs then you would be entitled to claim for the cost of the accommodation provided that you intended to return to your current umbrella company, once your holiday in Greece/Italy has finished and work on another assignment - your employment with them cannot terminate at the end of the assignment otherwise your location will not be considered temporary and therefore the cost of the accommodation would not be allowable for that reason

[eek]

They are wrong - see Travel expenses: general: accommodation and subsistence: subsistence costs that are not attributable to the travel: no permanent home: examples



Refer them to that page.

If they insist that they are right, then you will have to accept their expenses policy. You can then complete your self assessment to get back some of the money paid as allowable business expenses incurred.

No they are not wrong as it depends on why you are in this country. If its a secondment by your current employer thats fine, if its to start a UK company, and contract through it that wouldn't be fine.

As with everything here the pain is in the detail...... And HMRC will happily argue over detail.....

[DirtyDog]

No they are not wrong as it depends on why you are in this country. If its a secondment by your current employer thats fine, if its to start a UK company, and contract through it that wouldn't be fine.

In hindsight, I agree - it's the secondment which makes the difference.

[enrico200165]

(3 years have passed since reply but seems to me better to reply here than to open yet another thread)
Just to verify my understanding is correct and ask some related subquestions.
I am in a situation that seems identical to that of the OP, Italian (so eu citizen), residing in Italy, will be on a 3 months contract in UK.

My understanding is that
1) if I will not work on other assignments I cannot claim accomodation expenses
2) if I work on another assignment (and then stop contracting) then I can claim expenses for both assigments.

Is 2) correct? Also if working for a different client in the same town?

If after the first assignment on site in UK I get a second contract with the same client and umbrella company and in this second contract is agreed that I work from my house in Italy, can I claim UK accomodation for the first contract?

If you are maintaining your property in Greece whilst you are in the UK i.e. you have not rented it out thereby covering your costs then you would be entitled to claim for the cost of the accommodation provided that you intended to return to your current umbrella company, once your holiday in Greece/Italy has finished and work on another assignment - your employment with them cannot terminate at the end of the assignment otherwise your location will not be considered temporary and therefore the cost of the accommodation would not be allowable for that reason

[northernladuk]

(3 years have passed since reply but seems to me better to reply here than to open yet another thread)
Just to verify my understanding is correct and ask some related subquestions.
I am in a situation that seems identical to that of the OP, Italian (so eu citizen), residing in Italy, will be on a 3 months contract in UK.

My understanding is that
1) if I will not work on other assignments I cannot claim accomodation expenses
2) if I work on another assignment (and then stop contracting) then I can claim expenses for both assigments.

Is 2) correct? Also if working for a different client in the same town?

If after the first assignment on site in UK I get a second contract with the same client and umbrella company and in this second contract is agreed that I work from my house in Italy, can I claim UK accomodation for the first contract?

Got some bad news for you....

ContractorUmbrella Contractors: Claiming expenses post April 2016. | Contractor Umbrella