is travel to/from the UK a valid business expense?

[SueEllen]

Out of interest... what would one of the big consultancies do if they were flying you over for 6 months, and you were staying in accommonation all that time but maintaining a house in your home country?

Don't know what the Australian rules are but in the EU the company would be allowed to pay for the accommodation and other costs entirely.

Depending on the tax jurisdiction of the country you are in and also depending on the length of your stay you may be taxed on the expenses personally .

And is it comparable?

No.

In this case there is no company sending the guy over to work in the UK. He's coming himself to work.

A bit like EU workers coming to work on farms. Their accommodation and other expenses is paid from their personal income.

[slapbutt]

Nope.

The only way you could do it is if the Australian company you worked for sent you to work in the UK.

Well that is a possibility, I do have an Australian company that has 'employed' me and my wife over the years, and is still active even though I haven't had a contract through it since 2009.
I'll look into this aspect as well but it might well complicate things further.
As a background to that my intial thought was to leave the Aus company out of the equation as it all seemed too hard. (I thought there might be complications posed setting up the Aus company to trade in the UK (VAT registration, NI payments, Sterling currency bank accounts etc, and also that involving the Australian company would doubtles bring the whole episode under the eye of the Australian Tax Office too).
As income tax rates are higher in Aus than the UK overall I figured I'd be better setting up a UK company, being 'tax exempt' in Australia, and paying all the tax in the UK (as I won't be in Australia for about a year). Based on that I wanted to see what I could offset against that tax.

[Wanderer]

I wonder if you can you claim tax relief as an employee doing an international move?

International moves
5.4 Where a foreign national comes to the UK for employment his or her travelling costs and those
of his or her spouse and family may be eligible for relief under Section 373 and 374 ITEPA 2003.
If the expenses do qualify for relief in this way they are not expenses which qualify for exemption
for the purposes of the removals relief. The effect of this is that the foreign national will be able
to get the travelling costs as well as £8,000 of removal expenses tax-free.

Source: http://www.hmrc.gov.uk/guidance/480.pdf

You might want to get professional advice on this one, if you can claim for relocation expenses then it may be worth doing...

[slapbutt]

I think I'm occupying a 'grey area' all in all.
As a dual passport holding joint UK/AUS citizen I am technically a 'foreign national' coming to the UK to work for a fixed short duration.
On the other hand I have to be British for the purposes of actually working in the UK else I'd need a work visa if I tried to do it as an Australian, and it's the fact I don't need a visa that put me in the running for the position as someone is needed very soon. Also to set up a UK company as the vehicle I need to be British too.
That aside, the personal finance firm I'm dealing with are saying that the cost of my travel to/from the UK/Australia would be considered a justifiable expense (because I am continuing to incur costs maintaining my home in Sydney where family members will continue to live while I'm away).

Thanks for all the advice, fellow contractors.

[Wanderer]

I think I'm occupying a 'grey area' all in all.
As a dual passport holding joint UK/AUS citizen I am technically a 'foreign national' coming to the UK to work for a fixed short duration.

Yes, welcome back to the UK tax system. It's all as clear as mud.

As for being a foreign national who is relocating, I would take it to depend on which country you normally live in. Since your spouse and children live in Australia and I presume that you own property there then coming to the UK is a relocation and you may be entitled to claim for it.

Also to set up a UK company as the vehicle I need to be British too.

Really? I know people who came here on working holiday visas and set up companies. Perhaps they have cracked down on it now because too many people abused the system...

[Sockpuppet]

You might want to get professional advice on this one, if you can claim for relocation expenses then it may be worth doing...

Based on that you may not have any "removal costs". For the tax saving on the flights the prof advice may cost more.