Reply to: Flat Rental (+ food!)

[jlcook99]

So my accountant took a fresh look at the situation and has agreed that even if you rent a flat (as opposed to hotel) that you can claim for expenses like food without needing to declare anything on P11D.

[LondonManc]

That happened to me when the client canned the whole project. I was left with a flat I didn't need at Victoria docks. I told the landlord and we agreed that they would advertise it and I'd stump up their costs.

Yeah, it's not pretty. You're generally, unless you get lucky, going to be a couple of grand out of pocket.

[BoredBloke]

Your accountant advised the same as mine did.

I'd also advise against renting from a risk point of view - your project could be canned at any time but you are committed to the rent for the length of your rental contract.

That happened to me when the client canned the whole project. I was left with a flat I didn't need at Victoria docks. I told the landlord and we agreed that they would advertise it and I'd stump up their costs.

[Yorkie62]

I'm not sure how practical this is - I've rented 3 flats in London and have ben told each time that a business let isn't possible as a business credit check isn't possible or acceptable. How many flats have you rented Scruff and what were your experiences ?

Rented a few flats whilst staying away over the years. Always in myco name. Never had a problem. Being told that a business let in not possible is the letting agent being lazy, or dodgy! Most reputable letting agents do not have a problem with a business let so long as you can provide 3 years worth of accounts. I would be wary of any agent who makes such lame excuses regarding not being able to let to a business.

[Scruff]

I'm not sure how practical this is - I've rented 3 flats in London and have ben told each time that a business let isn't possible as a business credit check isn't possible or acceptable. How many flats have you rented Scruff and what were your experiences ?

Serviced Apartments are commercial enterprises and are geared up to be let by Corporate Entities. If they aren't, I would question their business model, and not use them. I would not rent a residential apartment in MyCo.'s name to use as a base whilst living away.

I have never rented an apartment in MyCo.'s name. When I work away, I stay in hotels.

[radish2008]

It is always a good idea to contract in YourCo.'s name - this removes any doubt who the contracting parties are, as well as shifting contractual liability to YourCo. Additionally, if you and the Vendor are VAT registered, you can claim the VAT back, too.

I'm not sure how practical this is - I've rented 3 flats in London and have ben told each time that a business let isn't possible as a business credit check isn't possible or acceptable. How many flats have you rented Scruff and what were your experiences ?

[Scruff]

I was advised that it didn't matter. Simply became an expense claimed back from YourCo if you paid for it personally.

It is always a good idea to contract in YourCo.'s name - this removes any doubt who the contracting parties are, as well as shifting contractual liability to YourCo. Additionally, if you and the Vendor are VAT registered, you can claim the VAT back, too.

[LondonManc]

Drip feeding information in this thread - Just listen to your accountant. One would hope that you have the Service Apartment rental agreement in the name of YourCo?

I was advised that it didn't matter. Simply became an expense claimed back from YourCo if you paid for it personally.

[Scruff]

Drip feeding information in this thread - Just listen to your accountant. One would hope that you have the Service Apartment rental agreement in the name of YourCo?

[jlcook99]

Have you registered for Council Tax at the "rented apartment"?
Is the apartment available to you, or family members outside of the working week?

Duality of Purpose.

Listen to your accountant.

It is serviced accomodation so I don't need to register council tax/utility bills. I never use the property at weekends or when I'm not at the customer site.

[LondonManc]

Have you registered for Council Tax at the "rented apartment"?
Is the apartment available to you, or family members outside of the working week?

Duality of Purpose.

Listen to your accountant.

As part of the whole rental thing, I covered it with my accountant.

You'll have to but you'll get a discounted rate for it.

If it's available to you and only you use it (to save journeying back up north if you're working late on a Friday, for example) then it's not a problem.

We figured a better option was spareroom.com

[Scruff]

Have you registered for Council Tax at the "rented apartment"?
Is the apartment available to you, or family members outside of the working week?

Duality of Purpose.

Listen to your accountant.

[LondonManc]

Your accountant advised the same as mine did.

I'd also advise against renting from a risk point of view - your project could be canned at any time but you are committed to the rent for the length of your rental contract.

[Old Greg]

Hello All

I've been contracting since October. Renting an apartment because the contract is 100 miles away from home. I've been collecting a filing expenses as if I were in a hotel, food and drink, sometimes claiming a small shopping bill + other times eating out.

I was very surprised (to say the least) to get my P11D through yesterday and find "Groceries" listed on it. When I clarified the situation the accountant said that because the flat has a kitchen then it is classed as "home from home" and therefore food cannot be expensed. They want on further to advise moving to a hotel instead of flat and then any food could be claimed (as there is no provision to cook in a hotel room).

I do not use the flat for personal use. I only stay there when I'm working at the customer site.

I colleague of mine is doing exactly the same as his accountant advised it that he can claim for his food whilst doing the same.

Are the HMRC guidelines open to this much interpretation??

Any help, guidance would be most valuable. I did search for a similar thread but couldn't see anything but apologies if I missed it.

Your accountant is either correct or stating the 'received wisdom'. Others would disagree. https://forums.contractoruk.com/acco...ay-home-2.html Ultimately, you are responsible and should decide what to do, once you understand the risks.

[Yorkie62]

Hello All

I've been contracting since October. Renting an apartment because the contract is 100 miles away from home. I've been collecting a filing expenses as if I were in a hotel, food and drink, sometimes claiming a small shopping bill + other times eating out.

I was very surprised (to say the least) to get my P11D through yesterday and find "Groceries" listed on it. When I clarified the situation the accountant said that because the flat has a kitchen then it is classed as "home from home" and therefore food cannot be expensed. They want on further to advise moving to a hotel instead of flat and then any food could be claimed (as there is no provision to cook in a hotel room).

I do not use the flat for personal use. I only stay there when I'm working at the customer site.

I colleague of mine is doing exactly the same as his accountant advised it that he can claim for his food whilst doing the same.

Are the HMRC guidelines open to this much interpretation??

Any help, guidance would be most valuable. I did search for a similar thread but couldn't see anything but apologies if I missed it.

Yep. My accountant advise that when using rented accommodation for staying away from home then claiming for food prepared in said rented accommodation is not a business expense. In much the same way you cannot claim for food when executing a local contract or working from home. Your rented accommodation is effectively a temporary sub office of your main office for the duration of your rental agreement. I assume the rental agreement in in yourCo name and not yours! If its not then you probably shouldn't be claiming the rent as a business expense either as you have entered a private rental agreement and not a business rental agreement. Just saying if you want to be squeaky clean in case HMRC come knocking.

Using rented accommodation can be cheaper, more convenient, and healthier, but it also comes with its disadvantages from a business admin perspective, i.e. its not always easy to get yourCo name on the rental agreement.