ltd co expenses

[HvN]

Hi there,

Could anyone please clear up a couple of points for me. I am contracting via a ltd company in the north of england, but I live in the south. I stay in a hotel 4 nights during the week and in my own house at the weekend. My accountant has told me the following -
1) I can not claim meals during the week while away from home
2) I can not claim any part of the mortgage on my house even though I use it as a home office.

I'd really appreciate it if anyone could confirm whether these statements are correct.

Thanks v much

[Hiram King Of Tyre]

My accountant recommends not claiming fo meals too although an umbrella co said they allow you to claim £15 a day if away for 10 hours+

Dunno about the mortgage. I think you used to be able to claim a proportion of heating too buy may then be liable to CGT ot a proportion of any CG on your property. I thinks there may be some recent change to the rules though

[malvolio]

If you are away from home for reasons of work, you can claim subsistence. How much is between you and YourCo, that's what having your own company is all about, provided you don't claim more that the total cost. It is not a BIK until two years are up, and even then subsistence (unlike travel) is arguable.

Mortgage relief is different - think about it, you would have to pay the mortgage anyway, and the building society won't reduce it because you're not living in a one part of it. The other reason for not doing it is because when you sell and move on, you will have to pay CGT on the proportion of the total value represented by your business. Much safer, if you think it worthwhile, to charge the YourCo for use of the house.

BTW, get an accountant that knows what he's talking about. Why else are you paying him?

[ratewhore]

Malvolio has given you the most important advice of this thread - get a new accountant!!!

[XLMonkey]

Inland Revenue tells you that....

.... your accountant knows nothing.... IR website (link below), states clearly that.....

Overnight subsistence and accommodation expenses

Where a business trip necessitates one or more nights away from home, the hotel accommodation and reasonable costs of overnight subsistence are deductible.

This does not extend to overnight accommodation and subsistence at the base of business operations, even if there is a contractual requirement for the trader to reside in a particular place.

The reasonable costs of meals taken in conjunction with overnight accommodation are allowable, whether or not paid on the same bill.

The same treatment may be extended to traders who do not use hotels, for example, self- employed long distance lorry drivers who spend the night in their cabs rather than take overnight accommodation.
.................................................. ..................

Link is here

http://www.hmrc.gov.uk/manuals/bimmanual/BIM47705.htm

Only question left is the definition of "reasonable". Generally, if you keep the average cost per meal below £25 the IR aren't even vaguely interested. If you're spending more than that, stop it -- you'll get fat and die before your time.

[tim123]

You never could claim part of the mortgage but the revenue have alsoe just reduced the things that you can claim for use of home-office, as describer here: http://www.hmrc.gov.uk/bulletins/tb79.htm (if you have a degree in IR-speak). This was being discussed on A-web, but I can't find it now!

tim

[cojak]

If you're spending more than that, stop it -- you'll get fat and die before your time.

[HvN]

Cheers guys, many thanks for the replies.
Just one more question about the home ofice. If I cannot claim any of the mortgage, can I still claim a portion the bills?
Thanks again.

[XLMonkey]

Cheers guys, many thanks for the replies.
Just one more question about the home ofice. If I cannot claim any of the mortgage, can I still claim a portion the bills?
Thanks again.

...err, tim123 gave you the link -- it tells you what and how much you can claim.... suggest you read it: http://www.hmrc.gov.uk/bulletins/tb79.htm#a

[Hiram King Of Tyre]

If you're working away from home and staying locally at your own expense: with friends, on a park bench, sleeping under the desk....whatever, can you claim an overnight subsistance ratefrom your own company?