Reply to: Am I under the 24 rule?

[Sally@InTouch]

Thanks for all the support,

Then the conclusion should be (?):

1) I can't claim the rent of my house because this house is in the same place than my LTD, but If my LTD is in the office of my accountant and he is in another city (London for example), Could do I claim for this expenses?

2) Althought I leave my principal residence in Spain to come here If I have my LTD in the place of the house I rented near of work, I can't claim for the rent.

<snip>

True?



Thanks.

Regardless of where your company is registered, your house is your primary residence and therefore not an allowable expense. If you worked a distance from your current house and had to rent elsewhere, instead of daily commuting, then that would be allowable with all the associated utility costs.

[northernladuk]

Thanks for all the support,

Then the conclusion should be (?):

1) I can't claim the rent of my house because this house is in the same place than my LTD, but If my LTD is in the office of my accountant and he is in another city (London for example), Could do I claim for this expenses?

You need to ask your accountant. I am surprised he told you that you can't but hasn't offered an alternative or a better explaination of your situation. I would take a guess at yes as it is just the location of your LTD that seems to be the issue.

2) Althought I leave my principal residence in Spain to come here If I have my LTD in the place of the house I rented near of work, I can't claim for the rent.

Isn't this exactly the same question as 1)?

<removed>

This link would be correct if the accomodation you are moving to is temporary to do your work and not related to your LTD.

Speak to your accountant again and nail him down to either give you an alternative that works and/or a better explaination of why he thinks you can't. This is a bit out of ordinary for us as we are mostly UK based so don't get in to this situation.

[friendspark]

Thanks for all the support,

Then the conclusion should be (?):

1) I can't claim the rent of my house because this house is in the same place than my LTD, but If my LTD is in the office of my accountant and he is in another city (London for example), Could do I claim for this expenses?

2) Althought I leave my principal residence in Spain to come here If I have my LTD in the place of the house I rented near of work, I can't claim for the rent.

<removed>

True?

Thanks.

[Craig@Clarity]

Her full name is Craigella but it didn't fit in the username box.....

Craigella...NorthernLadyUk....both didn't fit at the time of creating an account so we settled for the masculine

[Sally@InTouch]

I thought Sally was you and you had finally come out

... clearly you haven't met Craig then!!

[northernladuk]

What do you mean "finally"?

Her full name is Craigella but it didn't fit in the username box.....

[Craig@Clarity]

What do you mean "finally"?

[JamJarST]

Yey Sally!

I thought Sally was you and you had finally come out

[Craig@Clarity]

Yey Sally!

[Sally@InTouch]

Under HMRC "special rules" for travel, coming from abroad you are able to claim the cost of your travel. Any accommodation and subsistence do NOT form part of the travel and therefore are not allowable to claim as an expense.

You can travel home twice a year for up to 5 years and claim the costs of that travel. You are also able to expenses the cost of your spouse (if you have) and children visiting you for two trips per year.

As others have said, it would be wiser to have your accountant's address as your registered office. Most, do not charge for this service.

[Boo]

My accountant told me I'm not under the "The rule of 24 months" becouse althought my contract is completly temporal, My house isn't expense of my business becouse my Limited Company have the same address than my rent house.

They told me this one in order to show me I can't put the Rent of the house + Council + Water + Electricity like expenses of the business.

Answere of my accountant:
-------------------------

<<You are providing your services in the UK via your limited company. Although you provide your services at X’s business premises,
the company is based at your address. Your address is therefore your permanent workplace for UK tax purposes. It follows that only
travel between those two locations can be claimed. Your accommodation costs are not part of that travel.>>


IS THIS TRUE?

Yes. Under your circumstances you cannot claim anything towards the cost of running your house (except for ~£100 or so for use of one room as an office) for the reason your accountant gave. If you get a job in Spain through your UK Ltd Co. then you could claim expenses you incur there because traveling is involved from your UK Ltd Co. Similarly, if you could have used a Spanish Co. to get your UK contract then you could presumeably have offset your UK expenses through that in accordance with Spanish law.

But as it stands you cannot claim anything (apart from a small amount for use of a room as an office) for the use of your UK house. You can claim travelling expenses between your house and client site for 24 months under the 24 month rule, but as it's only 1.6 miles that won't be very much. You cannot claim for travelling from your companies registered address if that is different from your UK house because you are not in fact making that journey.

Sorry to bring bad news,

Boo

[friendspark]

Just had a question what might affect what I said but I won't delete it.

Where is your clients location in relation to where you are living in the UK? Do you work from home or at a clients site?

I work in the clients site and I live at 1.6 miles of this site.

Does your accountant offer a service for your business to be registered at his?

I will need request them if this is possible.

Many Thanks for all.

[northernladuk]

Granted it should be cleared with the landlord, my experience is that it isn't normally an issue once you've assured them that no actual work goes on at the address. The same reason you don't get clobbered for business rates either.

Interesting, my letting agent advised me not to accept someone who would have been bringing a registered business. He may give assurances but there was no way for me to know and should he have accidently left stock in the property (or car at the property) or was in during general working hours should something go wrong it could be deemed he was using it for business. It would be difficult to prove otherwise so advised leave it which I did. Might just have been overly cautious advice but seemed sound to me.

I'm not convinced the accountant is correct. Or if he is - get the registered address somewhere else.

The first seems plausible to some level and not others the more i think about it but the latter makes sense. Wonder why the accountant didn't offer that option though.

[NotAllThere]

... Worsr it is highly likely it will void your tenacy agreement. Most tenancy agreements do not allow business to be done from that address. Mine certainly do. It will void his landlords insurance and any of yours as well I expect but don't quote me on this.

Granted it should be cleared with the landlord, my experience is that it isn't normally an issue once you've assured them that no actual work goes on at the address. The same reason you don't get clobbered for business rates either.

I'm not convinced the accountant is correct. Or if he is - get the registered address somewhere else.

[northernladuk]

Just had a question what might affect what I said but I won't delete it.

Where is your clients location in relation to where you are living in the UK? Do you work from home or at a clients site?

Does your accountant offer a service for your business to be registered at his?