Can Accommodation be claimed fully as part of expenses

**threaded** · 2 March 2006, 14:20

It seemed to me that hotels could be claimed, but flats could not. It really depends on what your local IR office are like though.

**aa2006** · 2 March 2006, 14:22

Thanks for the quick response,
Looks like my umbrella company is telling me porkies.

I will speak to them again and see what they say

Cheers
Asif

**expat** · 2 March 2006, 14:25

Originally posted by akhtara7

My umbrella company has told me that my Accommodation expenses are redemable and that i cant just get the whole amount back.

I'm sorry, what do you mean? I would imagine that you could claim the cost od accommodation as an expense. That would mean that you don't pay tax on that money before you get it.

This is of course different from the permie's case, where normally the employer just gives them the money (perhaps after a bit of a tussle).

**aa2006** · 2 March 2006, 14:28

Oh, ok i think i may be getting a little confused.

What i want to know is if i pay £150 p/w on rent then i can claim this whole amount back rather then just the tax on it?

Thanks
Asif

**The Lone Gunman** · 2 March 2006, 14:36

Depends on the accountant...... (Darren where are you)

You put in an expenses claim and they pay you those tax free. All of it. It still comes out of the invoiced amount but no tax is paid on it.

Rent is arguable. I understand you can claim it 100% as long as it is directly to reduce hotel bills, but if you stay there for weekends or leave certain items there (dont ask what they are) then you can only claim effectively 5/7ths

**ASB** · 2 March 2006, 14:40

No, the tax man doesn't actually pay the bill for you...

Earning = 1,000. pay tax and NI on 1,000. Ok?

Now if you spend 200 on hotel bill then that reduces the figure chargable to tax by 200. So you only pay tax and NI on the 800.

HTH.

**aa2006** · 2 March 2006, 14:45

Oh.
Ok that makes a lot of sense, it pretty much what they were saying to me as well.

Thanks for the info

Asif

**zathras** · 2 March 2006, 14:47

Originally posted by akhtara7

Hi,
I am new to contracting and after searching this forum I still havent found an answer to my question.

I have put it claims for expenses such as my accommodation. I have a primary residence elsewhere and as such I am staying in hotels to do my job.

My umbrella company has told me that my Accommodation expenses are redemable and that i cant just get the whole amount back.

Could someone please shed some light on this

Thanks in advance

Yes and No - you don't really think anything to do with tax is simple!

You can claim the entire cost of accomodation as long as the cost is wholly and exclusively for business.

In practical terms what this means is that if you stay in the accomodation for any reason other than business. The company must be re-imbursed the cost of the days not business related.

Say for example you stayed in a flat in london Sunday Evening to Friday. Went home for the Weekend Friday evening. You could charge the weeks rent to the company. However it you stayed down for the weekend to take in a show then you would then have to re-imburse the company the cost of the extra days.

**ASB** · 2 March 2006, 15:04

Say for example you stayed in a flat in london Sunday Evening to Friday. Went home for the Weekend Friday evening. You could charge the weeks rent to the company. However it you stayed down for the weekend to take in a show then you would then have to re-imburse the company the cost of the extra days.

Depends. If your personal use is incidental and does not increase the cost then you weill generally be OK. Depends on the mood of the inspector. fwiw I've always claimed entire cost and put a bit through as BIK for when the family have come visiting.

It's a bit like the Oyster Card/Season Ticket/probably anything you can think of argument.

Can Accommodation be claimed fully as part of expenses