Non-domicile accommodation expenses

[Confounded]

I would argue that as a UK company you are required to maintain a UK address as this is where the work is to be performed as such the accommodation would not be an allowable expense even if you have a property abroad.

Dear Kenny,
I am sorry that I did not make it clear in my post, but we are not a UK-based company. My partners and I do not even live in the UK. But we are looking to get some contracts from the UK. If we do, one of us will be providing services on client's cite in the UK while others working from our home country. I would like to find out what would be tax liabilities of the person working long term (>6 months) in the UK as a non-UK-domicile (if I correctly understand this terminology). If someone has been in this situation I would be grateful for any information they can share. Also, a recommendation of a consultancy who can help in this situation would be very welcomed - so far the ones we have contacted said they only deal with UK-based companies. Thank you

[Kenny@MyAccountantFriend]

I would argue that as a UK company you are required to maintain a UK address as this is where the work is to be performed as such the accommodation would not be an allowable expense even if you have a property abroad.

If however you had a main property and then rented accommodation nearer to the client site for a contract the accommodation would be allowable as you are already maintaining a UK address.

The same rules would apply to the travel expenses from the original country of residence to the UK.

Umbrella companies operate via separate rules as they have a UK establishment to start with.

Unfortunately it is difficult to find HMRC guidance to confirm either way, however this article makes reference to the example and confirms the above.

Contractor doctor: is renting a home near the contract site an allowable expense?

[ASB]

Dear vmmilev and other members, I realise that this post is rather old, but I am interested in the same topic: can I claim rent as a business expense if I am moving to the UK (or even from a place of residence, say, in Leeds, to London) for the duration of the contract. I would be grateful if someone could share their experiences (not just sarcastic comments) and / or provide informative links. Thank you.

It depends upon your circumstances.

In essence if you live and maintain a home in place A and temporarily maintain accommodation in place B and have a temporary workplace related to that then the expenses of maintaining it and getting to and from it are usually chargeable against income. [The basic question being are the expenses related to being in a temporary workplace or related to needing a roof over your head]

There is a load of stuff here which may help you discover how the rules apply to your particular situation. Obviously your accountant/brolly /whatever may be a useful first port of call.

EIM31800 - Deductions: travel expenses: general: contents

[Confounded]

rent as expense

Hi, I live in Bulgaria and I work on a contract in Belfast. I opened UK limited company and I don't know can I claim my accommodation expenses. My primary address is in Bulgaria so I'm foreign domicile and I'm renting temporary place in Belfast. Thank you for helping me!

Dear vmmilev and other members, I realise that this post is rather old, but I am interested in the same topic: can I claim rent as a business expense if I am moving to the UK (or even from a place of residence, say, in Leeds, to London) for the duration of the contract. I would be grateful if someone could share their experiences (not just sarcastic comments) and / or provide informative links. Thank you.

[Jessica@WhiteFieldTax]

What about the Bulgarian aspects, though?

Its Friday. I'm off soon. For Hungary re Bulgaria. Sorry.

[DirtyDog]

Agree, a change of accountant may be suggested.

However on the second limb, I think the non residence status is potentially a red herring. Uk company + working in UK = UK tax rules fro the deductions.

Advising on the Hungarian aspects may be necessary, but only to make sure there is no inherent confict, but that advice is probably best sourced in Hungary itself as it would be boutique (=expensive) here.

What about the Bulgarian aspects, though?

[Jessica@WhiteFieldTax]

Time for a new accountant. You pay for a service from them, a very important service. If they can't supply it you go somewhere else. You have to give them a little credit though, I am sure they don't get too many non UK residents as customers so your questions will be more complicated than normal.

Agree, a change of accountant may be suggested.

However on the second limb, I think the non residence status is potentially a red herring. Uk company + working in UK = UK tax rules fro the deductions.

Advising on the Hungarian aspects may be necessary, but only to make sure there is no inherent confict, but that advice is probably best sourced in Hungary itself as it would be boutique (=expensive) here.

[vmmilev]

Thank you Brussels Slumdog. My assumptions are based on the same experience because I've worked in Europe and I was able to claim my accommodation expenses (as my primary address is in Bulgaria).

[Brussels Slumdog]

Double housing

Hi, I live in Bulgaria and I work on a contract in Belfast. I opened UK limited company and I don't know can I claim my accommodation expenses. My primary address is in Bulgaria so I'm foreign domicile and I'm renting temporary place in Belfast. Thank you for helping me!

I live in Belgium and I am working in the Netherlands and can claim accomodation and travel. When I work in the UK through an umbrella company I can claim expenses exactly the same as someone travelling from Belfast to London up to 24 months.

This is based on the fact that I maintain a house in Belgium. If you have a wife and children back in Bulgaria and maintain a house and fly back every week end then you most likely can claim expenses. You will need evidence that you are paying rent or a mortgage in Bulgaria

[northernladuk]

@northernladuk I'm totally agree with you for the accountant. The problem is that I'm with accountant company where they have one solution for all (something that doesn't fits me but I needed to start from somewhere). My personal accountant always needs to ask his manager when I have questions(So I'm guessing that my personal accountant is actualy assistent). I hope somebody had my experience and would be able to help.

Time for a new accountant. You pay for a service from them, a very important service. If they can't supply it you go somewhere else. You have to give them a little credit though, I am sure they don't get too many non UK residents as customers so your questions will be more complicated than normal. I would ask for your contacts qualifications just to make sure they are in fact an accountant. If they isn't bin them immediately IMO. Plenty of practices here where you can speak to a qualified accountant first.

You could try InTouch, Nixon Williams and SJD as they all post on here and well known as well as other good setups that contribute to this forum.

[vmmilev]

@northernladuk I'm totally agree with you for the accountant. The problem is that I'm with accountant company where they have one solution for all (something that doesn't fits me but I needed to start from somewhere). My personal accountant always needs to ask his manager when I have questions(So I'm guessing that my personal accountant is actualy assistent). I hope somebody had my experience and would be able to help.

[cojak]

I am going to get slated for this but you should have an accountant and be asking him about all this, particularly in the early days. There will be many aspects you are not aware of about running LTD's and then there is the added complexity of you not being a UK resident.

There are rules about the travel to your country to get to the gig as well as staying there so you need to get it right. It can get very complex when you add on to this the intention (or not) of this being your only contract so this would be your permanent place of work and so on.

If you have little understanding of the UK tax system I am sure a good accountant could actually end up saving you money.

Others always tell posters contracting abroad to use accountants in the country where they are working, I can't see that this is any different.

[northernladuk]

I am going to get slated for this but you should have an accountant and be asking him about all this, particularly in the early days. There will be many aspects you are not aware of about running LTD's and then there is the added complexity of you not being a UK resident.

There are rules about the travel to your country to get to the gig as well as staying there so you need to get it right. It can get very complex when you add on to this the intention (or not) of this being your only contract so this would be your permanent place of work and so on.

If you have little understanding of the UK tax system I am sure a good accountant could actually end up saving you money.

[vmmilev]

Hi, I live in Bulgaria and I work on a contract in Belfast. I opened UK limited company and I don't know can I claim my accommodation expenses. My primary address is in Bulgaria so I'm foreign domicile and I'm renting temporary place in Belfast. Thank you for helping me!