Reply to: is travel to/from the UK a valid business expense?

[Sockpuppet]

You might want to get professional advice on this one, if you can claim for relocation expenses then it may be worth doing...

Based on that you may not have any "removal costs". For the tax saving on the flights the prof advice may cost more.

[Wanderer]

I think I'm occupying a 'grey area' all in all.
As a dual passport holding joint UK/AUS citizen I am technically a 'foreign national' coming to the UK to work for a fixed short duration.

Yes, welcome back to the UK tax system. It's all as clear as mud.

As for being a foreign national who is relocating, I would take it to depend on which country you normally live in. Since your spouse and children live in Australia and I presume that you own property there then coming to the UK is a relocation and you may be entitled to claim for it.

Also to set up a UK company as the vehicle I need to be British too.

Really? I know people who came here on working holiday visas and set up companies. Perhaps they have cracked down on it now because too many people abused the system...

[slapbutt]

I think I'm occupying a 'grey area' all in all.
As a dual passport holding joint UK/AUS citizen I am technically a 'foreign national' coming to the UK to work for a fixed short duration.
On the other hand I have to be British for the purposes of actually working in the UK else I'd need a work visa if I tried to do it as an Australian, and it's the fact I don't need a visa that put me in the running for the position as someone is needed very soon. Also to set up a UK company as the vehicle I need to be British too.
That aside, the personal finance firm I'm dealing with are saying that the cost of my travel to/from the UK/Australia would be considered a justifiable expense (because I am continuing to incur costs maintaining my home in Sydney where family members will continue to live while I'm away).

Thanks for all the advice, fellow contractors.

[Wanderer]

I wonder if you can you claim tax relief as an employee doing an international move?

International moves
5.4 Where a foreign national comes to the UK for employment his or her travelling costs and those
of his or her spouse and family may be eligible for relief under Section 373 and 374 ITEPA 2003.
If the expenses do qualify for relief in this way they are not expenses which qualify for exemption
for the purposes of the removals relief. The effect of this is that the foreign national will be able
to get the travelling costs as well as £8,000 of removal expenses tax-free.

Source: http://www.hmrc.gov.uk/guidance/480.pdf

You might want to get professional advice on this one, if you can claim for relocation expenses then it may be worth doing...

[slapbutt]

Nope.

The only way you could do it is if the Australian company you worked for sent you to work in the UK.

Well that is a possibility, I do have an Australian company that has 'employed' me and my wife over the years, and is still active even though I haven't had a contract through it since 2009.
I'll look into this aspect as well but it might well complicate things further.
As a background to that my intial thought was to leave the Aus company out of the equation as it all seemed too hard. (I thought there might be complications posed setting up the Aus company to trade in the UK (VAT registration, NI payments, Sterling currency bank accounts etc, and also that involving the Australian company would doubtles bring the whole episode under the eye of the Australian Tax Office too).
As income tax rates are higher in Aus than the UK overall I figured I'd be better setting up a UK company, being 'tax exempt' in Australia, and paying all the tax in the UK (as I won't be in Australia for about a year). Based on that I wanted to see what I could offset against that tax.

[SueEllen]

Out of interest... what would one of the big consultancies do if they were flying you over for 6 months, and you were staying in accommonation all that time but maintaining a house in your home country?

Don't know what the Australian rules are but in the EU the company would be allowed to pay for the accommodation and other costs entirely.

Depending on the tax jurisdiction of the country you are in and also depending on the length of your stay you may be taxed on the expenses personally .

And is it comparable?

No.

In this case there is no company sending the guy over to work in the UK. He's coming himself to work.

A bit like EU workers coming to work on farms. Their accommodation and other expenses is paid from their personal income.

[Old Greg]

But you are so far away a term that fits here is 'Home from home'. It may be temporary but it is your home for now.

Out of interest... what would one of the big consultancies do if they were flying you over for 6 months, and you were staying in accommonation all that time but maintaining a house in your home country? And is it comparable?

[northernladuk]

contrSo in that respect is it possible to interpret that I am 'living away from home' and therefore make the cost of flying over to the UK and returning to Australia claimable as an expense intrinsic to the contract.

But you are so far away a term that fits here is 'Home from home'. It may be temporary but it is your home for now.

[eek]

I meant exactly what I said, HMRC will say that you are visiting here and happen to have a job, so your airfare is not claimable.

Likewise, if you spend time in a property outside the requirements of working at that location its not claimable. The rules for claiming living expenses are very tight and if you use the property outside working requirements (i.e. beyond Monday night to Friday morning) you can't claim for any of it.

You can claim for mileage or expenses from a location to the place of work. As I said before, and to be very clear, I think that is all you will be able to claim.

[SueEllen]

Thanks for the advice people.
I shall forget any idea about being 'normally resident' at my father's address in the uk as at 33miles away it'll be considered too close to be justifiably 'living away', and true, I don't actually 'live' there anyway.
What if I was to take the approach that I am coming from Australia to rent a (furnished) house in the UK only for the duration of the contract, given all that time I will genuinely still be paying costs on a house in Sydney to which I will be returning? My home in Australia won't be rented out while I'm away, it will have dependant family members living in it.
I'm not entirely sure what 'Eek' means by 'the job is not your only reason for coming here' (unless he/she knows something I don't). The only reason I'm coming to the UK is, well, simply for a fixed term contract job. I'll be out again and back downunder as soon as the job is over.
So in that respect is it possible to interpret that I am 'living away from home' and therefore make the cost of flying over to the UK and returning to Australia claimable as an expense intrinsic to the contract.

Nope.

The only way you could do it is if the Australian company you worked for sent you to work in the UK.

[slapbutt]

'coming to the UK for a fixed term contract', can I claim the cost of getting there?

Thanks for the advice people.
I shall forget any idea about being 'normally resident' at my father's address in the uk as at 33miles away it'll be considered too close to be justifiably 'living away', and true, I don't actually 'live' there anyway.
What if I was to take the approach that I am coming from Australia to rent a (furnished) house in the UK only for the duration of the contract, given all that time I will genuinely still be paying costs on a house in Sydney to which I will be returning? My home in Australia won't be rented out while I'm away, it will have dependant family members living in it.
I'm not entirely sure what 'Eek' means by 'the job is not your only reason for coming here' (unless he/she knows something I don't). The only reason I'm coming to the UK is, well, simply for a fixed term contract job. I'll be out again and back downunder as soon as the job is over.
So in that respect is it possible to interpret that I am 'living away from home' and therefore make the cost of flying over to the UK and returning to Australia claimable as an expense intrinsic to the contract.

[northernladuk]

You won't be able to claim you tickets from Australia as the job is not your only reason for coming here.

You will be able to claim 66 miles a day for mileage (there and back).

I seriously doubt you would be able accommodation as you will be getting a personal benefit from living there over the weekend.

You can of course try and claim everything, cross your fingers and hope but in reality I think the mileage is it.

I would agree with the above. You accomodation is your permanent place of residence for the duration of the contract as it will be where you live. If it was for 5 days of the working week it would be difference but it's not. For all intensive purposes it is your home.

[eek]

You won't be able to claim you tickets from Australia as the job is not your only reason for coming here.

You will be able to claim 66 miles a day for mileage (there and back).

I seriously doubt you would be able accommodation as you will be getting a personal benefit from living there over the weekend.

You can of course try and claim everything, cross your fingers and hope but in reality I think the mileage is it.

[Sockpuppet]

I am a dual UK/Australian citizen negotiating for a six month - 1 year IT contract in the UK. I'll be working in the UK as UK citizen (since I would need a visa to be there as an Australian).
I last worked as a contractor in the UK in 1994 and I see things are markedly different nowadays.
I am currently a UK non-resident taxpayer (taxed on interest on personal cash), my former UK company was dissolved 10 years ago so I shall probably start over again with an off-the-shelf UK company.
My limited understanding of IR35 is that 'business travel' could be claimed in excess of 'section 198' expenses - is there anyone out there who has been in a similar position with experience of coming to work in the UK for a short term?
I imagine that as UK citizen, then working in the UK the I-Revenue are likely to view me as 'resident' there even though I intend to return to Australia immediately after the contract ends.
I use my father's UK address for correspondance in the UK so I suppose I could have that as my 'home' in the UK and then 'live away' (claiming living costs as an expense) given the contract site is 33 miles away.
'IR35-confused'

I doubt you'd be able to justify expensing "living away" costs if your site is only 33 miles from where you currently "live". Also there is an expectation that you'll already be paying for something somewhere else. Rent, rates, utility bills etc. Don't think giving your father £100 a month will cut it either allowing you to expense a second place.

Any investigation and you're very likely to get the thick end of HMRCs displeasure as they are soon going to realise that your just trying it on trying to get your living costs tax free. Remember if they look at your home and find no evidence of you living there (i.e. personal items...a room for you) they are going to get very suspicious.

[stek]

Removed cos it was bollocks! Note to self, read post before replying!