Contractor tax - housing rent allowance

**eek** · 24 January 2014, 13:48

No because the property is used full time by you so can't be expensed.... That would be the case even if you had the paperwork so don't stress about it.

**DirtyDog** · 24 January 2014, 14:22

Originally posted by kedark View Post

can I do something to decrease my taxable income

Take an unpaid break ought to do it.

**kal** · 24 January 2014, 19:25

Originally posted by kedark View Post

Hi All,

I have recently arrived in UK and going to start my first contract.
my wife lives in UK on tier 2 visa and her company has provided the apartment for us.

Due to this, I do not have rent/lease agreement. I am just wondering if there is any way for me to get housing allowance benefit in my tax calculation.

Also, it appears that my take home payment reduces to 78% of actual pay after tax and Insurance deductions.
Is this normal tax deduction in UK? or can I do something to decrease my taxable income.

My umbrella company consultant has explained me the concept of expense claim. But, in the absence of lease expense it is very difficult to claim so much expense.

Just wanted to know if there are common practice followed by contractors to increase take home pay.

Thanks,

Here's a radical idea why not pay a fair rate of tax in the country you work in rather than trying to scam every last penny, if that doesn't appeal then I am sure there are plenty of flights out of Heathrow...

**ASB** · 24 January 2014, 19:54

As has been pointed out it is strangely not normally possible to claim your living accommodation against your taxable income.

You mention that your wife has an apartment provided.

It might be in your best interests to ascertain a few things in order to avoid any nasty surprises later.

Assuming she is a "higher paid employee" which means > 8,500 per year (yes year) the she will be liable for tax on the value of benefits. There are quite a lot of rules related to accommodation.

Quite what will need to be paid will depend upon your individual circumstances so a bit of searching may prove fruitful.

Or start here EIM11300 - Accommodation provided by reason of employment: table of contents

**northernladuk** · 24 January 2014, 20:15

Is your Umbrella one of the main brands or is it one of the type that sponsor you to come over? Can't be a Tier 2 visa without a job to go to can it?

**eek** · 24 January 2014, 20:34

Originally posted by northernladuk View Post

Is your Umbrella one of the main brands or is it one of the type that sponsor you to come over? Can't be a Tier 2 visa without a job to go to can it?

I wasn't going there as its his wife who has the Tier 2 visa.

**northernladuk** · 24 January 2014, 23:22

Originally posted by eek View Post

I wasn't going there as its his wife who has the Tier 2 visa.

And the chances of getting an answer are....

**ASB** · 25 January 2014, 08:09

Originally posted by eek View Post

I wasn't going there as its his wife who has the Tier 2 visa.

I hadn't realised that partners of t2 visa holders got full unfettered rights to employment.

since t2 is supposed to deal with "shortages" rather than areas where there is adequate labour supply it seems somewhat ironic that their +1 will contribute to increased over supply of labour in other areas.

**eek** · 25 January 2014, 08:29

Originally posted by ASB View Post

I hadn't realised that partners of t2 visa holders got full unfettered rights to employment.

since t2 is supposed to deal with "shortages" rather than areas where there is adequate labour supply it seems somewhat ironic that their +1 will contribute to increased over supply of labour in other areas.

I don't think they can work but it's incredibly hard to read the rules and I can't see anything that says explicitly that they cannot work.

Either way if he is working I would guess:

The umbrella he is using is dubious
The umbrella is pocketing a lot of the money paying him very little

Contractor tax - housing rent allowance