Renting away - taking family.

**ratewhore** · 31 December 2008, 10:45

Ask another accountant. I expect my accountant to tell me facts, not non-committal bs!!

**Sockpuppet** · 31 December 2008, 11:01

Originally posted by Ethereal_Gaz View Post

I've read a few threads on here which state that it's possible to claim for renting a property as a second "home" which is local to a temporary contract.

I'm considering a 12 months contract which is approx 100 miles from my (mortgaged) home.

If I was to rent a place rather than spending 4 nights in a hotel or driving 200 miles a day would I be able to claim 100% i.e. 7 days for the accommodation?

Would it complicate things if my wife, who has been ill recently, and 1 year old daughter were to accompany me to the new contract?

I'd be happy to pay the 2/7ths of the accommodation costs and / or any extra to pay for larger accommodation. Is this possible?

My accountant tells me this is unlikely but I may be able to claim approx 50% as "subsistence".

No.

You can claim a business cost if it is "wholly" a business cost. As your Mrs/Nipper will be living there you cannot claim this back as it will be seen as your home not as a business expense.

Of course you would also have to maintain your home elsewhere to get the deduction even as a second home, so if you were to move mrs and kid then accidentally rent your home you also wouldn't be able to claim the rental as you no longer have another "home".

**Ethereal_Gaz** · 31 December 2008, 13:03

I can see what you're implying in the second part of your reply but I'm really not trying to pull a fast one.

I'd be happy to just claim for, for example, the cost of a 2 bedroom flat then make up the difference. I wouldn't be asking for anywhere near the cost of 4 nights per week in a hotel.

On the HMRC website there is this example:

"Example 3
An employee of a German company is on secondment at a temporary workplace in the UK for 18 months. She is provided with a four bedroom house for herself, her husband and two children. A single employee in equivalent circumstances would only have been provided by her employer with a two bedroom flat.

On these facts part of what the employer provides is not a necessary expense attributable to the travel by the employee. Part of the accommodation is attributable to the accompanying family. Relief should be limited to the provision of a two bedroom flat, see SE31836."

But all of the examples given are for people from outsike the UK renting in England, I'm not sure if this make a difference?

We were thinking of possibly renting a room out in our home - so that we can have somebody look after the cats and still return to our home town every couple of weeks.

The new contract is a higher rate that what I'm on currently but not enough for me to justify the full running costs of a second home.

**Ethereal_Gaz** · 5 January 2009, 10:37

My accountant says that the only way he can think of working this is to put a charge through the company called "Travelling" but that there is a risk and the more I put through the higher the risk.

Anyone here have any experience of putting "Travelling" expenses through the company in this way?

**Ethereal_Gaz** · 6 January 2009, 17:55

Sockpuppet,
I've been trawling the HMRC website and apparently "expenses do not have to be wholly and exclusively incurred" see EIM31811.

Am I barking up the wrong tree here?

Renting away - taking family.