Permanent Place of Residence Permanent Place of Residence
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  1. #1

    Ronald

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    Default Permanent Place of Residence

    Folks,

    I hope I can get some clear advice on this issue since it seems another contentious one in the minefield that is ir35 (good luck they say).

    I live in London but my contract is in Cardiff, so I rent a place and stay there Sunday through Thursday nights. Thing is, I don't "maintain the upkeep" of the London property - its owned by family and lived in by other members of my family.

    My umbrella has informed me that for tax purposes my permanent place of residence must be Cardiff, since a) I don't own the London pad, b) I'm not a paying tenant and c) I'm not a mortgager. Meaning, the expenses I have been claiming over the last 12 months (prev. away from home contract as well) re. accom and travel to temporary workplace have been invalid.

    I have been through the IRs guidelines (480-2003) and cannot see how my umbrella has reached this interpretation, nor can they explain this ruling sufficiently to me.

    Advice...?

  2. #2

    fiddleabout

    Guest

    Default

    I'd say they are probably right. You live in Cardiff and go to see your mum/sister/whatever at weekends.

  3. #3

    Pabsi

    Guest

    Default

    I disagree I thinks London is.
    So where are you actually registered? ie what address is used for electoral register? (cardiff or london?)
    if not registered then which address are you registered with the bank? Id use that one as the permanent address.
    Thats what i did. I dont pay rent, have a mortgage (live with bro) either.

  4. #4

    xoggoth

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    Default

    Not sure, but don't think that's right. The IR guidlelines state that for an expense to be claimable it must be one incurred for business reasons that is over and above your normal expenditure.

    Assuming you really do normally live with your family between contracts, I can't see that it matters that you do not own the London place, you are clearly taking on an extra expense for business reasons.

    If you look on the IR website you will find their own internal guidance docs that talk about this somewhere.

  5. #5

    Ronald

    Guest

    Default

    xoggoth... Agreed. This is my understanding of business expense in general. Not everyone fits into the category of owning or renting their own property.

    I believe I am outside ir35 so my place of work is definitely temporary. If my contracted was ended tomorrow (6 months anyway) then I'd be back in London and there would be an empty flat (my risk).

    In London, the phone is in my name, it is my billing address for everything. Cardiff only exists to support the contract and assist in providing the IR with the billions in NIC and tax I pay every month.

    I have scoured the IR site for specific guidelines but cannot find anything that defines 'home for taxation purposes'. The co. in question is Brookson - they seem very thorough and professional but intractible when it comes to this issue. Could they have got it wrong?

  6. #6

    fiddleabout

    Guest

    Default

    The IR guidlelines state that for an expense to be claimable it must be one incurred for business reasons that is over and above your normal expenditure.
    Which is why I'd query this. From what was said it appears to me that you are currently living in Cardiff - it's not as if you are spending anything extra are you? I guess you pay diddly-squat for the London place.

    I wish you the best of luck getting it but I can see why they are being a bit cagey.

  7. #7

    Ronald

    Guest

    Default

    over and above YOUR normal expenditure
    ... says it all. Just about 1100 quid a week over and above. Not my problem if my normal expenditure is lower than the average.

    I do not understand your logic fiddleabout??

  8. #8

    Darren at 1st Accountancy Serv Ltd

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    Default Expenses

    Ronald......are you sure you're outside IR35? Just a quick thought!

    On the subject of expenses, the Cardiff rent is for business use as it is not you're permanent place of residence...you are there for the purposes of the assignment and nothing more. In fact, you could argue you are doing them a favour by not checking into a hotel (more expensive) & claiming this against you're expenses.

  9. #9

    fiddleabout

    Guest

    Default Re: Expenses

    > I do not understand your logic fiddleabout??

    Looks like nobody else does either so I'm probably wrong. Certainly if it is costing you more than your* normal expenditure I agree it should be chargeable as expenses. It just seemed to me that you were a bit of a nomad who was claiming to live elsewhere to legitimise your normal living expenses.

    *beware chav accountants who can't spell

  10. #10

    Ronald

    Guest

    Default Re: Expenses

    Re. Darren's post... As best as I can tell I'm outside IR35, but no one really know's until tested. My contract has passed and I meet the working practices qualification of a couple of contracting orgs.

    Good point re. hotel expenses. I stayed in a hotel during my first 2 weeks @ 45/night. They couldn't even find me an iron some mornings. Great impression starting a new contract. Renting is light-years better value (but there's a risk if your contract's cancelled of course). Its 40% cheaper than the dog-house I was originally staying in and it rents for £600 a week as a daily serviced apartment (nice to expense that!).

    The mob I'm fighting over this says if I was in a hotel during the week, it would qualify as my home for taxation purposes (just sleep in the park on the weekends). Sense, logic, window.

    Re. Fiddleabout. All I want is a contract in London so I can stay there instead of wasting 10 hours a week commuting and my Sunday night. Unfortunately there wasn't one at the time for the work I do.

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