Claiming accomodation

**Svalbaard** · 13 February 2009, 14:15

Italy eh? Not sure about the financials but if you find the name "Amanda Knox" anywhere on the lease I'd suggest getting the hell outta' Dodge.

**tim123** · 13 February 2009, 14:47

Originally posted by Mehmeh View Post

Hi boys and girls,

I'm working in Italy for the next 3 months, and looking at accomodation.

I don't want to live in a hotel for that long, so am considering flatshares.

How do I go about claiming this back? Alot of the flatshares I find are just people with spare rooms, so no contracts etc... Do I need the contract to be in my LTDs name, and therefore need a contract???

In that case I'm better off with a "proper" flat with a contract or a hotel yea?

Ta!

This is for you to decide, but ISTM (in financial terms) paying 50% of the rent and not claiming it, is better for your pocket than paying 100% of the rent and getting 30% off from the Tax man.

Don't let the tax tail wag the dog (as my accountant once said).

tim

**Billy Pilgrim** · 13 February 2009, 15:03

Originally posted by tim123 View Post

This is for you to decide, but ISTM (in financial terms) paying 50% of the rent and not claiming it, is better for your pocket than paying 100% of the rent and getting 30% off from the Tax man.

Don't let the tax tail wag the dog (as my accountant once said).

tim

But still not as good as paying 50% of the rent AND getting a further 30% off the tacman though is it !!

When I stayed in rented accomodation (no contract, was a friends place) I set up a monthly direct debit from my business account to pay for it

Hope this helps

**tim123** · 13 February 2009, 15:22

Originally posted by Billy Pilgrim View Post

But still not as good as paying 50% of the rent AND getting a further 30% off the tacman though is it !!

Obvioulsy not, but getting a receipt for a flat share is outside of his control, isn't it

tim

**ASB** · 13 February 2009, 16:38

You don't need a receipt to claim it. But you will need to satisfy the HMRC that the expenditure was incurred A receipt is simply an easy way to do that, but any sort of paper trail can keep them happy.

In any event this may not be the best way of dealing with it. Consider the IR allowed scale rates (this is differen from a dispensation).

Some links:-
http://www.hmrc.gov.uk/manuals/eimanual/EIM05260.htm
http://www.hmrc.gov.uk/manuals/eimanual/EIM05280.htm
http://www.hmrc.gov.uk/employers/wwsr-oct08.pdf

These do NOT need receipts but differing rates are payable depending upon where you are and how you stay.

**Olly** · 13 February 2009, 18:26

Woww!!!

So right now I work in Munich and rent a room here for €600 a month.
I was intending to claim that back, my lunchtime meals and £10 a night allowance for 5 nights Sunday to Thursday.

From what I've just read on HMRC site, that £10 a night remains unaffected but instead of €700ish a month in receipted expenses I could instead claim €209 http://www.hmrc.gov.uk/employers/wwsr-oct08.pdf for each 24 hour period = €4180 a month!

Er...21% of the difference is extra €730 company profit each month and allows me to withdraw €3480 a month as expenses (that I didn't incur at that rate) and not pay income tax on it?

This is surely too amazingly good to be true isn't it?

**ASB** · 13 February 2009, 20:47

Originally posted by Olly View Post

So right now I work in Munich and rent a room here for €600 a month.
I was intending to claim that back, my lunchtime meals and £10 a night allowance for 5 nights Sunday to Thursday.

From what I've just read on HMRC site, that £10 a night remains unaffected but instead of €700ish a month in receipted expenses I could instead claim €209 http://www.hmrc.gov.uk/employers/wwsr-oct08.pdf for each 24 hour period = €4180 a month!

Er...21% of the difference is extra €730 company profit each month and allows me to withdraw €3480 a month as expenses (that I didn't incur at that rate) and not pay income tax on it?

This is surely too amazingly good to be true isn't it?

Read all the guidance. See how you apply your situation to it. Speak to your accountant and ask HMRC for thier opinion.

I don't know whether you can claim the full 209 euro - because you have chosen to rent a room. However I think you can probably claim the residual rate of 73 per day + breakfast and the 600 per month you spend on rent. You might be able to charge the full 209 though.

As I say it depends on your exact circumstances and I would get the opinion of HMRC before you do so.

fwiw myco always paid scale rather that were lower than the IR rates and the inspector didn't bat an eyelid (or at least not about that

).

**Olly** · 10 March 2009, 14:58

Originally posted by ASB View Post

You don't need a receipt to claim it. But you will need to satisfy the HMRC that the expenditure was incurred A receipt is simply an easy way to do that, but any sort of paper trail can keep them happy.

In any event this may not be the best way of dealing with it. Consider the IR allowed scale rates (this is differen from a dispensation).

Some links:-
http://www.hmrc.gov.uk/manuals/eimanual/EIM05260.htm
http://www.hmrc.gov.uk/manuals/eimanual/EIM05280.htm
http://www.hmrc.gov.uk/employers/wwsr-oct08.pdf

These do NOT need receipts but differing rates are payable depending upon where you are and how you stay.

I've just spoken to my accountants and they inform me these are not allowed unless special dispensation is agreed with HMRC

ASB - do you have any further advice on this one? are the accountants missing something and it is indeed permissible? Any ideas how / who I'd go about asking at HMRC. Would I really need to tell them the true nature of my accommodation arrangements here?

The 73 Euro a day + breakfast (although I don't eat breakfast!) is still better than the measly £10 I'm claiming now.

Thanks

**LisaContractorUmbrella** · 10 March 2009, 15:22

Scale rates can be applied for from HMR&C but in order to obtain them you would need to be able to prove the the sums applied for are realistic and reflective of the costs that are being incurred. You would need to be able to supply receipts which cover a fixed period (determined by HMR&C) for the expenditure in question before the scale rate would be granted. Although you would not need to provide receipts from then on (subject to HMR&C review) you would still need to incur a cost - the rules regarding legitimate expenses still apply.

Claiming accomodation