Relocation expenses

[mikecoe]

Hi,

I have a specific question relating to relocation expenses.

I currenly trade through my own limited company but there is little contract work available where i live (Northumberland).

I am considering moving to another part of the county so I'm closer to more contracts.

Can I legitimately process a relocation expenses claim through my limited company? I will be selling my existing home and my new home will become my main residence.

I intend to comply with all hmrc rules regarding relocation expenses (http://www.hmrc.gov.uk/guidance/relocation.htm) and will limit the claim to £8000 to avoid additional tax and NICs.

I've been searching on google but haven't been able to find an answer to this so would really appreciate some views.

Many thanks,
Mike

[NotAllThere]

It has been asked before. IIRC the consensus is - probably not.

[Grinder]

You could claim for your new home-office to be fitted out. But there are implications for capital value being added to the property, and any gain on eventual sale becoming taxable as company profits.

[SteveV]

I never quite understood this one.

If I worked for a software company (not my own) and they decided to relocate then I would be entitled to relocation allowances.

So why is it different if my own company decides there are better places to trade.

[Beefy198]

Because you wouldn't have had any say in the matter?

[mikecoe]

Thanks for all your comments so far.

Beefy198's response (Because you wouldn't have had any say in the matter?) does seem significant.

So HMRC decides that because you are able to manipulate the situation, its not a forced relocation and therefore would not accept it as a true expense?

Any other thoughts?

[sallyp]

Relocation

I too have had to relocate to seek contract work - although I have taken an alternative route and have a couple of queries:

I have signed a tenancy agreement on an apartment for the duration of my contract (5 months) and am wondering which is the best way to reduce (if possible) council tax payments - do I register my business name (Ltd company) or with my name? Apartment is in Business name (LTD).

I stay away from home on average 3 nights a week.

I live 4 nights in my own home (with partner) and pay council tax here also - is there any way round paying council tax twice??

This is first time I have needed to stay away in the week - so any advice would be welcomed and greatly received ;-)

ie TV licenses, utility bills etc