Reply to: Accommodation expenses in your 'home' city?

[LisaContractorUmbrella]

Thanks. Do you need to be paying anything for it to be considered a permanent residence? Mortgage or rental agreement? Or is it just enough that all of your life (bank, car, credit cards etc) are registered there, but not any utility bills?

If HMRC were to investigate whether or not the tax relief you had claimed was legitimate you would be asked to prove that an address was your permanent place of residence - I would be surprised if they would accept that was the case if you could not produce utility bills, council tax bills etc.

[northernladuk]

Thanks. Do you need to be paying anything for it to be considered a permanent residence? Mortgage or rental agreement? Or is it just enough that all of your life (bank, car, credit cards etc) are registered there, but not any utility bills?

Well they closed to the loop on claiming you are living in BTL properties when you come to sell it to avoid CGT. In the days of old you could just provide some bills as evidence but now it is much more stringent and you get picked on you will have to prove beyond doubt you lived there. I think it will be pretty easy for them to ascertain if you live there or are just forwarding post.

[infosec]

You need to have a permanent residence in order to claim tax relief on the cost of additional accommodation

Thanks. Do you need to be paying anything for it to be considered a permanent residence? Mortgage or rental agreement? Or is it just enough that all of your life (bank, car, credit cards etc) are registered there, but not any utility bills?

[LisaContractorUmbrella]

If I had a rental contract in Greece for example, then London would be considered additional and claimable? I'd still need to have my company and bank accounts registered at the London address I use though, as you can't not have an address in the UK in order to operate. I'd end up spending about 9-10 months in London I'd guess, but issues of residency would arise somehow I guess if I claim to 'live' in Greece….

My life is very simple, except on paper! ;-)

You need to have a permanent residence in order to claim tax relief on the cost of additional accommodation

[DirtyDog]

There's nothing to stop you staying in a hotel and claiming the cost.

You just need to declare the benefit on your P11D and pay the tax on it.

[Dallas]

My life is very desperate, I am trying to find every loophole possible to fudge paying tax! ;-)

FIFY

[eek]

If I had a rental contract in Greece for example, then London would be considered additional and claimable? I'd still need to have my company and bank accounts registered at the London address I use though, as you can't not have an address in the UK in order to operate. I'd end up spending about 9-10 months in London I'd guess, but issues of residency would arise somehow I guess if I claim to 'live' in Greece….

My life is very simple, except on paper! ;-)

You can claim if its wholly related to work. I.e. you work monday to friday and only use the flat Monday - Thursday nights. If you live in the flat for the entire period of the contract (including weekends) then its your permanent residence for that period of time....

[infosec]

+1

You can only expense ADDITIONAL costs you incur, if you didn't have the contract in London you wouldn't be living in London fair enough, but by taking the contract you do not incur any additional costs as you will have to live "somewhere".

If you were to say you lived with your parents etc elsewhere as your permanent address but not pay any rent, taking temporary accommodation in London for the duration of your contract would be allowed, but this is not in the spirit of the rules.

If I had a rental contract in Greece for example, then London would be considered additional and claimable? I'd still need to have my company and bank accounts registered at the London address I use though, as you can't not have an address in the UK in order to operate. I'd end up spending about 9-10 months in London I'd guess, but issues of residency would arise somehow I guess if I claim to 'live' in Greece….

My life is very simple, except on paper! ;-)

[MicrosoftBob]

why not just rent a bedsit is somewhere horrid (anywhere outside Lodon) for a few quid a month, thats then your perm address for a few goats a month rent.

or since your mates have had enough you could find a squat.?

Or rent a bedsit somewhere horrid in London and save a few quid, there are plenty available....

[SimonMac]

We have had a post like this quite recently, wasn't it the guy who lives at mates flats in Glasgow or something and has moved to London. I seem to remember the upshot of this is you live a transient life with no 'home base' the next place you stay is considered your permanent location.

I kinda wonder why you haven't managed to build a home in 15 years of contracting? Isn't it about time to leave the family bossom and stand alone?

Anyway. No.

+1

You can only expense ADDITIONAL costs you incur, if you didn't have the contract in London you wouldn't be living in London fair enough, but by taking the contract you do not incur any additional costs as you will have to live "somewhere".

If you were to say you lived with your parents etc elsewhere as your permanent address but not pay any rent, taking temporary accommodation in London for the duration of your contract would be allowed, but this is not in the spirit of the rules.

[infosec]

I kinda wonder why you haven't managed to build a home in 15 years of contracting? Isn't it about time to leave the family bossom and stand alone?

If only for a family bosom…..

Simple: I don't want to spend my life worrying about paying off a bunch of unpainted bricks when there is a whole planet to explore...

[infosec]

No you can't claim expenses as you need somewhere to live.

There is a HMRC expenses leaflet that covers this scenario.

Agreed, I have one in another country, with evidence - but I assume that would only work if I was registered here and paying tax here as well etc, whereas I change countries each year depending on seasons and whim.

London accommodation is 100% just for work, I'm not interested in being there unless working, which is normally ok for business expenses - except this one ;-)

Square peg into a round hole…..

[tarbera]

1.5 years as a freeloader - wow

why not just rent a bedsit is somewhere horrid (anywhere outside Lodon) for a few quid a month, thats then your perm address for a few goats a month rent.

or since your mates have had enough you could find a squat.?

[northernladuk]

We have had a post like this quite recently, wasn't it the guy who lives at mates flats in Glasgow or something and has moved to London. I seem to remember the upshot of this is you live a transient life with no 'home base' the next place you stay is considered your permanent location.

I kinda wonder why you haven't managed to build a home in 15 years of contracting? Isn't it about time to leave the family bossom and stand alone?

Anyway. No.

[SueEllen]

No you can't claim expenses as you need somewhere to live.

There is a HMRC expenses leaflet that covers this scenario.