Question regarding moving for work

[RyanDS]

Before I start, yes I have asked my accountant and am awaiting a response, I just like to also check these types of things on the forum just as they may be niche and a second opinion is always good. If I have missed something on my forum search I'd appreciated being shown in the right direction.

My last contract finished a couple of months back and I have been on the bench (well a couple of odd 2 or 3 days roles, but nothing serious.) My lease on my flat was up anyway, so while on the bench I have been couch surfing while I decided on the next role., with my stuff in storage. (I was debating between roles in Edinburgh and London so didn't want to commit to a flat until I had a signed contract, and my flat was in Milton Keynes so no point in me staying there anyway.)

I now have a new role and am house hunting, but I expect it to take a couple of weeks at least to find somewhere. Question is during that period can I claim hotels, commute costs etc? Am I away from home for work, or as I don't actually have a home at the moment would my hotel be counted as my residence and hence not be eligible? I can see both sides. Anyone had a similar situation?

Cheers in advance.

[northernladuk]

Before I start, yes I have asked my accountant and am awaiting a response, I just like to also check these types of things on the forum just as they may be niche and a second opinion is always good. If I have missed something on my forum search I'd appreciated being shown in the right direction.

My last contract finished a couple of months back and I have been on the bench (well a couple of odd 2 or 3 days roles, but nothing serious.) My lease on my flat was up anyway, so while on the bench I have been couch surfing while I decided on the next role., with my stuff in storage. (I was debating between roles in Edinburgh and London so didn't want to commit to a flat until I had a signed contract, and my flat was in Milton Keynes so no point in me staying there anyway.)

I now have a new role and am house hunting, but I expect it to take a couple of weeks at least to find somewhere. Question is during that period can I claim hotels, commute costs etc? Am I away from home for work, or as I don't actually have a home at the moment would my hotel be counted as my residence and hence not be eligible? I can see both sides. Anyone had a similar situation?

Cheers in advance.

No. You are looking for a home so not a business expense.

[ladymuck]

Ditto the above.

[RyanDS]

Damn. Makes sense I suppose. I was thinking it could be argued that a hotel near work while I looked for a house 15 miles away may be claimable, but I can see the arguments against.

[northernladuk]

Damn. Makes sense I suppose. I was thinking it could be argued that a hotel near work while I looked for a house 15 miles away may be claimable, but I can see the arguments against.

Were you claiming the rent for your Milton Keynes pad through the company? Do you intended to claim your new flat through the company?

[RyanDS]

Were you claiming the rent for your Milton Keynes pad through the company?

No, because I lived and worked there. And it was undeniably my home or main welling or however you define.

My reasoning for the question was amongst other things you can claim moving costs etc if relocating for work. As per: Relocation expenses your contractor company can claim

So:
Work and live in MK - No claims
Living in temp accom while hunting - no claim (as obviously no work to claim against)
New contract in London, so moved to London to start contract - 2 weeks of hotel possibly claimable while lease on rented accomodation sorted out.
New contract + new accomodation - No claim as back to normal situation as per MK.

[northernladuk]

No, because I lived and worked there. And it was undeniably my home or main welling or however you define.

My reasoning for the question was amongst other things you can claim moving costs etc if relocating for work. As per: Relocation expenses your contractor company can claim

So:
Work and live in MK - No claims
Living in temp accom while hunting - no claim (as obviously no work to claim against)
New contract in London, so moved to London to start contract - 2 weeks of hotel possibly claimable while lease on rented accomodation sorted out.
New contract + new accomodation - No claim as back to normal situation as per MK.

But you fail the very first rule

For your future reference, the reason for relocation must be one of the following:
• A new job
A change of job/place of employment. The new place of employment must be significantly far away from your current residence to make relocation necessary.

• Change of Duties
Duties must have changed from you being transferred to another department or branch, which means you must travel a greater distance to your place of work.

• Change of Location
The place where you carry out your duties has moved, which means that you must travel a greater distance to your place of work.

You don't meet any of those criteria. You might think the first but you aren't moving for a new job. You are doing a temporary gig with your existing LTD.

But what you are doing in moving from gig to gig which should just be temporary therefore claimable. The problem you have is that you don't have a home so every place you go MUST be your permanent location as you have no other.

Looking through a number of guides the whole relocation thing is a right crock as all the criteria is permie stuff.

It will be interesting to see if your accountant offers you some clever little work around but common sense would tell you relocation expenses every time you move to a short term gig is a bit of a piss take.

[RyanDS]

Funnily enough my accountant has come back the other way.

Hotel while looking for flat to rent at the beginning of new contract that is far away from old = temporary and okay.

If I chose not to rent (as opposed to being forced to move for work) it would be no allowed.

No more detail than that, I will go back and query. To be honest this is why I ask the question here as well. Not this accountant, but I have seen a lot of bad advice regarding IR35 especially from friends accountants, I always like to double check.

[northernladuk]

Funnily enough my accountant has come back the other way.

Hotel while looking for flat to rent at the beginning of new contract that is far away from old = temporary and okay.

If I chose not to rent (as opposed to being forced to move for work) it would be no allowed.

No more detail than that, I will go back and query. To be honest this is why I ask the question here as well. Not this accountant, but I have seen a lot of bad advice regarding IR35 especially from friends accountants, I always like to double check.

I'm not so sure that's true. It's going to be your permanent residence whether you rent or buy. The rent/buy is irrelevant to all this. It's your only home so is your permanent residence.

[WTFH]

Funnily enough my accountant has come back the other way.

Hotel while looking for flat to rent at the beginning of new contract that is far away from old = temporary and okay.

If I chose not to rent (as opposed to being forced to move for work) it would be no allowed.

But the old contract finished some time ago. You are not stopping renting your flat because you have got the new contract. You had stopped renting because the old contract had finished, at which time you became No Fixed Abode.
If you had stopped renting because of having a new contract that forced the move, then I could sort of see where the accountant was coming from, but because you've already said that you stopped renting some time ago, then I'd say no, you can't claim it.