Temporary accommodation as an expense

[Hobosapien]

If you are living in a location purely for the contract then yes you can claim expenses operating outside IR35.

You can class your parents address as your primary residence so no need to change address for important stuff like bank, driver licence, other mail ...

Look into the impact of not going home every weekend in regards travel log (for travel expenses) and claiming 5/7 of weekly accommodation cost and other associated costs (bills if renting).

As long as you are sensible and not claiming for every last thing when you don't need to be there at weekends but are choosing to be, the worst that would happen if HMRC ever investigated (and that is the only time the expenses need to stand up to scrutiny beyond what your accountant requires in terms of records/proof for the accounts) is they would disallow the expenses and re-adjust the tax due accordingly. i.e. your ltd can still pay you expenses so not personally out of pocket but cannot offset them against tax so more corp tax would be due. Though then BIK rears its ugly head.

As the contract progresses read up on the 24 month rule and decide if you want to relocate officially to London for future work so will be moving primary residence and stopping claiming expenses.

[DavidC]

Quick question - Who told you the contract was outside IR35?

Please don’t say the agent ?


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Hi,

It's consultancy/project work. Looking over the ir35 criteria i wouldn't fall under it (assuming hmrc play fair) but yes the agency did mention it!

Looks like I'll have to get an accountant - will have a look for one in the new year's sales.

Have a great 2019 all.

[northernladuk]

Damn Google search method...

[BR14]

Riiiiight....

of coarse

[greenlake]

for all intensive purposes

FFS, please tell me it's deliberate!

Of course. A little something to keep people on their toes.....

Riiiiight....

IMO for all intensive purposes

Realistically and for all intensive purposes

For all intensive purposes

[northernladuk]

FFS, please tell me it's deliberate!

Of course. A little something to keep people on their toes.....

[mudskipper]

for all intensive purposes

FFS, please tell me it's deliberate!

[northernladuk]

You live with your parents but you are moving to London for work. IMO you don't have a permanent place so everyone you move to is your home for the time being. I can't see bunking at your parents can be classed as permanent so for all intensive purposes you'll be living in London. I don't see how you can claim any of that.

[DeludedKitten]

If you can successfully argue that this is a temporary workplace away from your permanent place of work then you could claim 5/7 of the cost.

The fact that you are regularly staying there over the weekend would imply that this is not temporary accommodation, IMHO.

One for your accountant to advise.

[GhostofTarbera]

Quick question - Who told you the contract was outside IR35?

Please don’t say the agent ?


Sent from my iPhone using Contractor UK Forum

[DavidC]

Hi all,

I will be moving to London next year to undertake a 12 month contract (outside ir35, site based, first time contracting and through a ltd company).

I currently live with my parents and do not own the property or pay rent there but would class it as my permanent residence. I will not be travelling back to my permanent residence regularly (e.g. at weekend) for the duration of the contract. The cost of doing so would be circa £160.00.

Will I be able to claim accommodation in London as an expense? E.g. renting a flat or taking an airbnb.

I can see variations of this question have been asked but still can't figure out whether I can treat this as an expense or not for my current living situation.

Thanks in advance

David