Living away from home expenses

**DMGee** · 5 February 2010, 07:22

Originally posted by wiggabaiters View Post

Im working a contract that sometimes means I stay away from home overnight near the location of my work. Now sometimes I stay in Travelodges, Premier Inns etc and thats fine to put through the books, but at other times I stay at an in-laws house and they dont charge me anything. However I would like to pay them something, say a nominal £30 a night b&b payment. The problem is I would want to put this through the books (I aint that generous!) so would need a receipt but their situation means they are unsure about the legality. Do they have to be registered in any way to be a b&b? Their situation is they live in a council house and pay rent to the local authority. They are therefore unsure how this would effect things as effectively they are sub-letting? Would it be better to class me as a lodger? What would be the personal tax implications to them? Anyone got any suggestions? It would probably only ever be a maximum of £150 a month.

I'm in a similar boat (staying at dad's sometimes when contracting Mon-Fri) and as yet haven't put anything through the books as I didn't want him to get stuffed on certain things (sole-occupier council tax for one). He doesn't want to charge me anything but I'd like to give him a bit now and then to count for the hot water and stuff I'm using.

**northernladuk** · 5 February 2010, 07:32

This wouldn't be to difficult to research IMO. Google can be a good friend. So can the HMRC website...

You can pay them a reasonable amout for staying over and food, something like 30 - 40 quid or something. It is to cover costs etc and not reflect a commercial rate. There is no way it costs your parents 60quid a night to put you up etc.

You don't need a reciept for it, there is a term for this payment which I forget and cba looking up.

Your parents friends can declare this income on their tax returns on the Rent a Room scheme which allows them to claim £4250 a year tax free from this type of income. Value might have changed now though. I aint an accountant so can't remember exactly.

HMRC, your accountant and search button are the fonts of all knowledge that you can trust IMO. Am just a miserable northern git.

**DMGee** · 5 February 2010, 07:39

Originally posted by northernladuk View Post

This wouldn't be to difficult to research IMO. Google can be a good friend. So can the HMRC website...

You can pay them a reasonable amout for staying over and food, something like 30 - 40 quid or something. It is to cover costs etc and not reflect a commercial rate. There is no way it costs your parents 60quid a night to put you up etc.

You don't need a reciept for it, there is a term for this payment which I forget and cba looking up.

Your parents friends can declare this income on their tax returns on the Rent a Room scheme which allows them to claim £4250 a year tax free from this type of income. Value might have changed now though. I aint an accountant so can't remember exactly.

Handy info - thanks!!

HMRC, your accountant and search button are the fonts of all knowledge that you can trust IMO. Am just a miserable northern git.

Ha, that you are but a helpful one, in your own way. Sure it gets frustrating seeing the same things over and over but this is a great place to ask as chances are someone is browsing who just has that info to hand and can couple it with their own mini case study.

**ASB** · 5 February 2010, 10:56

1) Any payments actually made are claimable with a receipt. Thier are potential tax consequences on the recipient - it's just income though it may be covered by the "rent a room scheme"

2) Look for "staying with friends" on HMRC website. Appy those rules and description to your description.

3) Generally you may claim £25 for an overnight with friends (in the absence of 1). The basic rule is that in orderr to claim it you must spend something - and potentially be able to demonstrate to the revenue.

Of course the obvious risk is that I am just telling you complete tosh, so you still need to establish the veracity of what I have said.

**Mustang** · 5 February 2010, 11:22

Quote from HMRC website

Staying with family or friends

"When an employee spends a night away from home whilst on business, he may choose to stay with a friend or relative instead of staying in a hotel. The employee may incur the cost of an evening meal. The employee is entitled to a deduction for a qualifying expense incurred while staying with family or friends.

With effect from 6 April 2009, you should no longer agree a scale rate payment for expenses incurred while staying with a friend or relative. Scale rate payments for staying with friends or family should be removed from existing dispensations as part of the normal process of 5 yearly reviews."

HTH

**wiggabaiters** · 7 February 2010, 08:44

Originally posted by ASB View Post

1) Any payments actually made are claimable with a receipt. Thier are potential tax consequences on the recipient - it's just income though it may be covered by the "rent a room scheme"

2) Look for "staying with friends" on HMRC website. Appy those rules and description to your description.

3) Generally you may claim £25 for an overnight with friends (in the absence of 1). The basic rule is that in orderr to claim it you must spend something - and potentially be able to demonstrate to the revenue.

Of course the obvious risk is that I am just telling you complete tosh, so you still need to establish the veracity of what I have said.

Cheers for that - option 3 sounds good,I'l run it by the accountants. Thanks

Living away from home expenses