Hotels when on contracts

[andy]

what's wrong with sleeping under a bridge in a big cardboard box

[EternalOptimist]

what's wrong with sleeping under a bridge in a big cardboard box

its not tax deductible

[angusglover]

Though if the lonely old widow is a well preserved 50, then great fun might be had by all....

Dunno what it is luv,,,but it needs ironing!!!!!

[SallyAnne]

I've rented a couple of times in the past but I'd never do it again - even on a long term gig. The money I save just isn't worth the hassle of sorting out all the utility bills and stuff.

Plus the last place stung me for a grands damage deposit.

I tend to stay in nice(ish) hotels to be honest - it's the only way I can cope with being away from home. I hate busy-body women talking to me first thing in the morning, so B&B's are out.
Ideal would be say £60 a night with a swimming pool, room service and unlimited chick flicks on the pay per view.

Obviously I'd rather pay £13 a night than £100, but I think you have to do what keeps you from going insane.

[darmstadt]

I rented just outside of Munich once but it was a right pain, now I either use pubs (or Gastaette if you like) although I'm currently in a serviced apartment most of the time. In between I do the loyalty card thing, which is nice, and charge to the client.

[DS23]

i'm with sa on this. rental might be more cost effective but utilities, cleaning, the risk of contract termination but a rental that rolls on, plus when abroad you get the extra resident taxation issues.

i use to do the big chain loyalty thing using client rates and claim it all back. nice and comfortable but still expensive. big clients frequently take months and months to pay expenses back and the exposure can become horrendous.

i'm all in now and doing budget hotels, bigger lunch, snack evening meal, fewer beers... every little cut improves the bottom line.

[Numptycorner]

big clients frequently take months and months to pay expenses back and the exposure can become horrendous.

Surely getting paid expenses by the client means Yourco cannot offset the expenses against tax. Surely also this makes you vulnerable to IR35 investigation as Yourco should be paying expenses and not the client, or it looks like an employer/employee relationship with the client.

[DaveB]

Surely getting paid expenses by the client means Yourco cannot offset the expenses against tax. Surely also this makes you vulnerable to IR35 investigation as Yourco should be paying expenses and not the client, or it looks like an employer/employee relationship with the client.

No. YourCo charges Daily Rate + Expenses for your time to the client.

You Claim the expenses from YourCo. YourCo gets the expenses from the Client, so there is no final discrepancy between the two when calculating CT.

If you claim expenses directly from the client then it's a different matter and one that has some serious implications.

[Numptycorner]

No. YourCo charges Daily Rate + Expenses for your time to the client.

You Claim the expenses from YourCo. YourCo gets the expenses from the Client, so there is no final discrepancy between the two when calculating CT.

If you claim expenses directly from the client then it's a different matter and one that has some serious implications.

Surely that means you cannot get tax relief on expenses that are reinbursed by the client or you are commiting fraud?

[DaveB]

You mean you get tax relief on expenses that are reinbursed by the client. Surely that is fraud?

No, because there is no tax relief being claimed. The expenses paid to YourCo. by the client count as revenue for YourCo and are therefore taxable.

Since the amount paid out to you by YourCo. as expenses equals the amount paid to YourCo. by the client there is no net expenditure to qualify for relief.